Donations and Parental Grants: What Changes in Property Transfers in 2025

Since the autumn of 2021, when the tax-free threshold of €800,000 for donations and parental grants between close relatives was introduced, the process of transferring property has changed dramatically. This measure has enabled families to transfer real estate and monetary assets without tax burden, making most such transactions effectively tax-free. Especially in the case of a first residence, the total tax exemption can exceed one million euros, providing significant financial relief for households.

Any type of transfer—whether it involves real estate, cash, securities, company shares, or other assets—is considered a donation or parental grant and must be declared to the tax authorities. The declaration is submitted by both parties, the donor and the recipient, either electronically through the Independent Authority for Public Revenue (AADE) platform or directly at the competent tax office. When the transfer is executed via notarial deed, the declaration must be filed before the signing of the contract; in any other case, the deadline is six months from the date of transfer or money transfer.

The calculation of the tax depends on the degree of kinship between the two parties. First-degree relatives—parents, children, grandchildren, and spouses or civil partners—belong to the first tax category, which enjoys the favorable €800,000 exemption. Beyond that limit, a 10% tax is applied to the excess amount. For second-degree relatives, such as siblings, in-laws, and grandparents, tax rates can reach up to 20%, while for third parties or more distant relatives, the rate may rise to 40%.

The tax exemption covers all forms of property—from real estate and movable assets to bank deposits or cash—provided that the transfer is made through a financial institution. Conversely, if the donation is carried out in cash without bank mediation, the amount is subject to tax according to the applicable rates for each category of relatives. To qualify for the exemption, the transaction must be supported by proof of bank transfer, such as a transfer from the donor’s account to the recipient’s, the issuance of a bank cheque, or a direct deposit to the seller’s account in the case of a property or vehicle purchase. The relevant IBANs and proof of transaction must accompany the declaration.

The €800,000 tax-free limit applies once for each donor–donee pair. If additional transfers take place between the same individuals after October 1, 2021, their values are aggregated to determine whether the exemption limit has been reached.

A special provision applies to parental grants related to a first residence, where additional tax-free amounts are granted. For unmarried or underage recipients, the exemption is set at €200,000; for married individuals, it increases to €250,000, with an additional €30,000 for each dependent child. In the case of land plots, these amounts may be further increased by €50,000 to €100,000, depending on the circumstances.

These changes have already been reflected in the tax statistics. In the first seven months of 2025 alone, the number of donation, grant, and property transfer transactions increased by 11% compared to the same period of the previous year, reaching 152,000. Revenue from these transactions amounted to €152 million, a development attributed to the favorable legal framework and the high tax-free threshold, which have made family property transfers simpler, more transparent, and financially accessible.