Updated: 2025-12-08
Many parents want to help their children with money, property, or a car and worry about taxes. Others receive an amount from parents or grandparents and don’t know if they need to declare it and how.
In this guide, you’ll learn in simple steps when gift or parental provision tax is paid, how the €800,000 tax-free amount works, what the kinship categories and rates are, what applies for first home purchases and mortgages, and which mistakes lead to fines during AADE (Greek Tax Authority) audits.
Beneficiary Categories and Tax Rates
The law divides beneficiaries into three categories based on kinship. The tax depends on this classification.
Category A
Who belongs here:
- Spouse or civil partnership partner
- Children
- Grandchildren
- Parents
Tax regime for gifts and parental provisions after 1.10.2021:
- Total tax-free amount: €800,000 per donor-recipient pair
- Anything exceeding the limit is taxed at 10%
Example 1: Parental provision of €850,000 from parent to child:
- The first €800,000 has 0% tax
- The next €50,000 has 10% tax → €5,000 tax
Example 2: Parent gives to child:
- €500,000 in 2022
- €500,000 in 2024
Total €1,000,000:
- The first €800,000 has no tax
- The next €200,000 has 10% tax → €20,000
Important: The tax-free amount does not renew each year. It applies cumulatively from 1.10.2021 onwards for all gifts and parental provisions between the same persons.
Category B
Who belongs here:
- Siblings
- Grandparents/grandmothers (in certain cases)
- Uncles, aunts, nephews, nieces
- In-laws
- Blood relatives or relatives by marriage up to the third degree
Tax regime:
- For monetary gifts: 20% tax usually from the first euro, without €800,000 tax-free amount
- For real estate and other assets: progressive scales apply per value bracket
Category C
Who belongs here:
- Any other relative not included in the previous categories
- Third parties, friends
Tax regime:
- For monetary gifts: 40% tax on the total amount
- For real estate and other assets: corresponding scales apply
Summary Table
| Category | Relationship | Monetary gift / parental provision | Tax-Free Amount |
|---|---|---|---|
| A | Spouse, children, grandchildren, parents | 10% on amount above €800,000 | €800,000 per pair |
| B | Siblings, uncles, aunts, nephews, etc. | 20% from the first euro (for money) | Practically no |
| C | Third parties, friends | 40% from the first euro (for money) | Does not apply |
How the €800,000 Tax-Free Amount Works
The €800,000 tax-free amount is one of the most favorable provisions for families. Here are the key points:
Basic rules:
- Applies only to Category A (spouses, parents, children, grandchildren)
- Covers all assets (money, real estate, shares, cars, etc.)
- It is one-time per pair of persons, not annual
- Counts all gifts/parental provisions from 1.10.2021 onwards between the same persons
- For monetary amounts, the transfer must be made through a bank or other financial institution (wire transfer, check, etc.)
Special reduction: If the beneficiary has a disability of 67% or more, the resulting tax is reduced by 10%.
Declaration and Payment Procedure
Gift or parental provision tax declarations are made electronically through the AADE’s myPROPERTY system. There are two basic cases:
With Notarial Document
Usually for real estate:
- The notary prepares the gift/parental provision tax declaration
- The declaration appears in both donor’s and recipient’s myAADE inbox
- Both parties accept it
- Tax is automatically calculated and a debt identity is issued
- Tax for real estate is usually paid in bimonthly installments
Without Notarial Act
For monetary gifts or movables without notarial act:
- The donor or recipient completes the declaration on myPROPERTY
- The declaration is sent to the other party’s inbox for acceptance
- After acceptance, a tax assessment act and debt identity are issued
- If tax is due, for monetary gifts it is usually paid in full within a few days (e.g., within 3 days)
Submission deadline: Generally, within 30 days from the day of the gift or from signing the relevant document.
Person liable for payment: Always the recipient (the person receiving the money or property).
Required Documents
The most common documents for the declaration:
- Family status certificates, birth certificates, civil partnership certificate
- Tax identification numbers (AFM), tax offices (DOY), and IDs of the parties
- Notarial document for real estate or other assets requiring a notarial act
- Previous gift/parental provision tax acts (to show what has already been given)
- Bank transfer receipts or checks for monetary gifts
- For cars: vehicle registration, customs documents if applicable, and purchase receipts
Where digital submission is not yet possible, the declaration is filed at the tax office within the prescribed deadline.
Special Cases with Examples
First Home Purchase
For monetary gifts/parental provisions from parents to children for first home purchase, a special favorable regime applies.
If the child meets the first home exemption requirements (Law 1078/1980), the monetary gift can be taxed under the Category A scale and not autonomously at 10% from the first euro.
Today, because the €800,000 tax-free amount exists, in practice most such parental provisions are fully covered by the tax-free amount, provided no other large gifts have been made previously.
Example: Parent gives €150,000 to child for first home purchase, with bank transfer and proper documentation:
- If there are no previous gifts, the amount is covered by the €800,000 tax-free amount
- Gift tax: €0
Help with Mortgage
If parents pay installments or give a lump sum to the child to pay off a mortgage:
- The amount is considered a monetary parental provision
- It counts towards the €800,000 tax-free amount
- There must be a bank trail (transfer from parent’s account to child or to bank with clear justification) and a gift/parental provision declaration
Example: Parents give €100,000 to child to close a loan:
- If it falls within the €800,000: tax €0
- If the limit has already been exhausted: 10% tax on the excess
Lump Sum Monetary Gifts
Lump sum gift of €50,000 from parent or grandparent to child/grandchild:
- If declared as parental provision with bank transfer and the €800,000 tax-free amount has not been exhausted, there is no tax
- However, the amount is recorded and reduces the remaining tax-free amount for future gifts
Gifts to Friends
Gift of €1,000 to a friend:
- Considered Category C gift
- Technically, 40% tax is owed on the total amount → €400, even if it’s a “small gift”
In practice, many small gifts are not declared, but:
- If discovered during an audit or wealth declaration check, authorities can consider the amount as a gift and impose 40% tax plus fines for undeclared transfer
Gift, Parental Provision, and Inheritance
Gift:
- Any gratuitous transfer of property while the donor is alive
- The taxable event is the day of signing the contract or the date when money/property is delivered
- The declaration must usually be submitted within 30 days
Parental provision:
- Special form of gift from parent or grandparent to child or grandchild
- Same rates as gifts apply, but with Category A favorable regime and the €800,000 tax-free amount
Inheritance:
- Transfer of property after death
- The tax obligation arises on the death of the deceased
- The heir has a deadline of 9 months (or 12 if living abroad) to submit an inheritance declaration
- Progressive scales apply per category, with additional deductions for spouse and children
Important: Gifts/parental provisions made after 1.10.2021 and covered by the €800,000 tax-free amount are not recalculated in inheritance tax.
Common Mistakes Leading to Fines
Non-Declaration of Gift
Large amounts “as loans” without an actual contract can be characterized as gifts. During bank transaction audits by AADE, 10%–40% tax may be imposed depending on the relationship, plus fines.
Cash Transfer Without Bank
If money goes as “cash in hand” and is then deposited in the child’s account, AADE may not accept that it is a parental provision covered by the €800,000.
For the tax-free amount to apply, a clear bank trail from donor’s account to recipient’s account is preferred.
Overlooking Presumptions and Wealth Declaration
If the child lives only on a small income but shows large deposits from parents, questions and audits may arise. Non-declaration of gift tax may be considered a violation and lead to income or gift tax assessment.
Confusion with the Tax-Free Amount
The €800,000 is a cumulative cap from 1.10.2021 onwards, not annual. All declared gifts/parental provisions from the same donor to the same recipient are counted.
Not Recording Old Gifts
In electronic declarations, previous gifts/parental provisions from 1.10.2021 (for Category A) must be completed, so that the remaining tax-free amount is correctly shown.
Residents Abroad
For tax residents abroad, special regulations apply:
- Greece generally taxes gifts, parental provisions, and inheritances concerning Greek property (e.g., real estate in Greece)
- Simple monetary gifts between two persons living permanently abroad may not be taxed in Greece but may be taxed in the country of residence
- If the amount passes through a Greek account or the beneficiary has a Greek tax number, Greek authorities may require a declaration
In cross-border cases, advice from a tax professional or lawyer familiar with both tax systems is essential.
Key Takeaways
✅ Category A (parents, children, grandchildren, spouses) have a €800,000 cumulative tax-free amount, with 10% tax on the excess
✅ Categories B and C do not have a corresponding tax-free amount for money – they pay 20% or 40% respectively from the first euro
✅ The €800,000 is once per pair of persons and counts all gifts/parental provisions after 1.10.2021
✅ For the tax-free amount to be recognized for monetary gifts, the transfer must be through a bank and a declaration must be made on myPROPERTY
✅ Any large transfer not declared can be audited and characterized as a gift, with tax and fines
✅ Gifts/parental provisions covered by the tax-free amount are not recalculated in inheritance tax
The information in this article is for informational purposes and is based on current tax legislation. For specific cases, consultation with a tax professional or accountant is recommended. Taliro.gr is not responsible for any changes in legislation or for decisions made based on this information.