Gift tax is a tax imposed on the value of a gift when a person gives money or valuable possessions to another person. There are fixed rules for how much you can give per year without tax, and what is subject to gift tax. The thresholds vary depending on the relationship between the giver and the recipient.
Frequently Asked Questions About Gift Tax
What is gift tax?
Gift tax is a tax imposed on the value of a gift when a person gives money or valuable possessions to another person. There are fixed rules for how much you can give per year without tax, and what is subject to gift tax. The thresholds vary depending on the relationship between the giver and the recipient.
How much can you give as a gift without paying gift tax?
There is an annual gift exemption, which determines how much you can give as a gift without paying gift tax. The exemption depends on the relationship between giver and recipient, and the amounts are adjusted every year. The rates for 2025 apply.
The rules apply to both cash and gifts with economic value, such as securities and valuables. Correct calculation is important to avoid unnecessary tax and audit by the Danish Tax Agency.
Note: From 1 January 2027, siblings will be included under the rules for close relatives.
SkatteInform can advise you on the current amounts so you avoid exceeding the threshold and paying unnecessary tax.
Which gifts are subject to gift tax?
Gift tax applies to all gifts with economic value, including:
- Cash
- Securities
- Valuables
- Real estate
SkatteInform can assist you in assessing whether a gift is subject to tax.
Are any gifts tax-free?
Some gifts are tax-free, and some relationships have special rules. Gifts between spouses are always tax-free. Gifts between parents and children can be given tax-free up to the gift exemption, while gifts to siblings, nephews/nieces or friends are usually taxed as personal income on the recipient's tax return.
We review your situation and ensure correct handling so you avoid surprises.
How is gift tax calculated?
Gift tax is calculated as a percentage of the gift amount above the threshold. The tax rate depends on the relationship between giver and recipient. A correct calculation requires that all gifts are included, also those given continuously throughout the year. SkatteInform provides an accurate calculation and ensures correct reporting.
How do you report gift tax?
Gift tax must be reported digitally to the Danish Tax Agency. Both value and relationship must be stated. If the gift consists of valuables, the value must be correctly assessed so the Danish Tax Agency can approve it.
Failure to report can lead to tax surcharges, interest and, in some cases, audit cases. The Danish Tax Agency can require documentation several years back in time.
How can SkatteInform help with gift tax?
Contact us for a conversation about your options. We review your situation, assess advantages and disadvantages, and give a clear overview of the process.
Disclaimer
As the above is for guidance purposes only, we accept no liability for decisions that may be made based on the above without prior individual advice. We accept no liability for errors and omissions.