Loans and gifts

Presents and gifts in direct line family is taxed by 15%. Off course ordinary presents for Christmas or birthdays are not taxed, and neither is it taxable if you visit a colleague and bring a bottle of wine or flowers. But gifts that represents a certain value and any cash gift exceeding smaller amounts in the family is indeed taxable.

For family in direct line the first DKK 74.100 (2024) yeach year is taxable. This limit is per person. Thus a mother and a father can give their daughter DKK 74.100 x 2 = DKK 148.200 in one year without taxation.

If a father gives DKK 200.000 to his daughter, the 200.000 – 74.100 = 125.900 is taxable by 15%. If both parents give a common gift of 200.000 to the same daughter, the taxable value is only 200.000 – 74.100 – 74.100 = 51.800.

In case of large gifts it as possible to adjust the taxes on the taxable part of a gift from 15% to 13% by coordinating the payments and strategy. This is off course more relevant the larger the gifts becomes.

Gifts may also be a crucial tool in inheritance planning if the family is considering making a tax free estate. Please contact us for inheritance planning and planning of estate.

Gift to people outside the direct family line and their spouses is taxable income for the on receiving the gift. Normal Danish taxation will be 38-52%.

If you wish to transfer larger amounts it may some times be more reasonable to establish a family loan. These can be interest and payment free regardless the amount. When the loan document/promissory note has been issued the fund may be transferred – and later on some of the loan may be converted into gifts or inheritance.

Loans and gifts are very used and very flexible tools to distribute wealth in the family and to optimize taxation on the wealth that is already present.