Customary donations: generosity without tax consequences
A customary gift, a common gesture of generosity during special events, is exempt from free transfer taxes, provided that it remains proportional to the donor's income and assets. As Christmas draws closer, it is essential to understand these rules to avoid unexpected tax implications, but also to ensure equality between the beneficiaries of these gifts.
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A customary present is a modest donation made on the occasion of a special event, such as a birthday, a wedding, or a birth, Christmas, etc.
It is a mark of generosity which is not considered for tax purposes as a donation, and is therefore not subject to gratuitous transfer taxes.
It can also be money, an object (clothing, furniture, artistic creation, jewelry, etc.), a vehicle or even securities.
The customary gift must be proportional to the income and assets of the donor.
For example, a donation of €10.000 can be considered a customary gift if the donor has significant assets.
This will not be the case if he has low income and/or few assets.
This donation must not disrupt their lifestyle or significantly affect the donor’s assets.
In fact, it is accepted that a gift whose value does not exceed 2% of the donor's assets or 2,5% of the annual income constitutes a customary gift.
So something to think about with Christmas approaching.
Be careful, however, to respect a certain equality between your children.