Understanding Taxes on Gifts in Denmark: A Guide for Expats
If you're an expat living in Denmark, understanding Danish tax rules can be crucial, especially when it comes to gifts from family members. Denmark’s tax system is known for its transparency but also for its complexities, particularly with gift and inheritance taxes. Whether you're receiving financial help for settling down, getting a property gift, or just a token of love from home, here’s what you need to know to navigate gift taxes as an expat in Denmark.
1/22/20251 min read
In Denmark, gifts between family members are subject to taxes under certain conditions. While small, casual gifts are generally tax-free, larger financial gifts often incur taxes if they exceed a certain amount. This system, known as “Gaveafgift,” applies differently depending on the relationship between the giver and receiver, as well as the value of the gift.
Who pays the Gift Tax?
The tax responsibility typically falls on the receiver (you, as the gift recipient in Denmark). This means that as an expat, if you receive a gift from a family member abroad that surpasses Denmark’s tax-free threshold, you’re required to declare and pay taxes on the amount that exceeds the limit.
How much can I receive without paying taxes?
From Husband/wife: Limitless assuming you are married when you get the money
From Parents/Grandparents/Partner you live with: Up to 71,500 (2024)
From Siblings/Friends: No tax-free amount
How much tax should I pay on amount exceeding the tax-free amount?
You pay 15 % tax on the amount that surpasses the tax-free amount. See below for an example.