You want to give away money, investments or property. How much reaches the recipient after tax? German gift tax (Schenkungsteuer, §§ 1–37 ErbStG) works on the same principles as inheritance tax: the tax-free allowance and rate depend on how closely you are related to the recipient. Our gift tax calculator gives you the result in seconds.
How does German gift tax work?
Gift tax applies to transfers made while you are alive. The tax office checks whether the gift exceeds the tax-free allowance. Only the excess is taxable. The rate depends on the taxable amount and the tax class.
Important: German gift tax uses a flat-bracket system (Vollmengenstaffel). The rate applies to the entire taxable amount — not just to the portion above a threshold.
The three tax classes
| Tax Class | Persons |
|---|---|
| I | Spouse, registered partner, children, stepchildren, grandchildren |
| II | Siblings, nieces, nephews, parents, grandparents (when receiving a gift) |
| III | All other persons |
Tax-free allowances by relationship
| Relationship | Allowance | Tax Class |
|---|---|---|
| Spouse / registered partner | €500,000 | I |
| Child / stepchild | €400,000 | I |
| Grandchild | €200,000 | I |
| Siblings, nieces, nephews | €20,000 | II |
| Other persons | €20,000 | III |
Tax rates by class
| Taxable Amount | Class I | Class II | Class III |
|---|---|---|---|
| up to €75,000 | 7 % | 15 % | 30 % |
| up to €300,000 | 11 % | 20 % | 30 % |
| up to €600,000 | 15 % | 25 % | 30 % |
| up to €6,000,000 | 19 % | 30 % | 30 % |
| up to €13,000,000 | 23 % | 35 % | 50 % |
| up to €26,000,000 | 27 % | 40 % | 50 % |
| over €26,000,000 | 30 % | 43 % | 50 % |
The 10-year aggregation rule (§ 14 ErbStG)
A key feature of German gift tax: allowances renew every 10 years. You can use the same allowance to the same person again once 10 years have passed since the previous gift.
However, multiple gifts to the same person within 10 years are added together. The tax office aggregates all transfers from the previous 10 years before calculating the tax due.
Example: You give your child €300,000 in 2016 and €300,000 in 2024. For the 2024 gift, the tax office adds both: €600,000 total. Allowance €400,000, taxable €200,000.
Worked example 1: Child receives €100,000
A child receives a gift of €100,000. Tax class I, allowance €400,000.
Taxable amount: €100,000 − €400,000 = €0
Gift tax: €0
The gift is fully tax-free. The allowance is not yet exhausted.
Worked example 2: Sibling receives €50,000
A brother receives a gift of €50,000. Tax class II, allowance €20,000.
Taxable amount: €50,000 − €20,000 = €30,000
€30,000 falls in the bracket "up to €75,000" → rate 15 %.
Gift tax: €30,000 × 15 % = €4,500
Net gift: €45,500. The sibling allowance is far lower than the child allowance.
Worked example 3: Unrelated person receives €100,000
A friend receives €100,000. Tax class III, allowance €20,000.
Taxable amount: €100,000 − €20,000 = €80,000
€80,000 falls in the bracket "up to €300,000" → rate 30 %.
Gift tax: €80,000 × 30 % = €24,000
Net gift: €76,000. Nearly a quarter goes to the tax office.
Gift tax vs. inheritance tax: what is the difference?
Gift tax and inheritance tax use the same allowances, tax classes, and rates. The crucial difference: with gifts, allowances renew every 10 years. Early planning allows large assets to be transferred tax-free in stages.
Read more: Inheritance Tax Calculator and German inheritance tax explained.
Tips for minimising German gift tax
- Use allowances every 10 years: Plan gifts so that allowances are fully utilised. After 10 years, the allowance resets.
- Give in stages: Instead of one large transfer, spread smaller gifts across multiple 10-year periods.
- Use the spouse allowance: The spouse allowance is €500,000. Combined with child allowances, large amounts can be transferred tax-free.
- Consider usufruct reservations: A retained right of use (Niessvorbehalt) on property reduces the taxable gift value.
- Consult a tax adviser: For large assets or property transfers, professional advice pays off.
Disclaimer
This calculator provides an estimate based on the statutory rules (ErbStG). It does not replace professional tax advice. Special cases such as business assets, property valuation, and retained usufruct are not included.
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