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AADE clarifies tax rules for small IRIS transfers between relatives
The Independent Authority for Public Revenue (AADE) has issued clarifications regarding the taxation of small money transfers between relatives, including those made via the IRIS instant payment system. The authority stated that small transfers, such as pocket money provided by parents or grandparents to children and students under 25, are not of particular tax interest and do not require declaration as gifts, provided they cover daily living expenses like rent or tuition.
Tax authorities will focus on transactions that show a specific pattern of abusive practice or do not align with a taxpayer's economic profile. For larger gifts between first-degree relatives, there is a tax-free threshold of 800,000 euros when conducted through official banking channels. Amounts exceeding this limit are subject to a 10% tax rate.
AADE also addressed a widely discussed case involving a student in Evia who received a gift from her grandfather. The authority clarified that the tax assessment was part of a broader investigation into a group of individuals and was not triggered by the specific pocket money transfer. The tax was levied because the donation occurred before the implementation of the 800,000 euro exemption and was based on a voluntary declaration that, under current law, cannot be revoked through administrative appeal.
Entities
Dispute Resolution Directorate · Greece · IRIS · Independent Authority for Public Revenue
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The tax audit of a student in Evia was part of a broader investigation into a circle of persons and not related to her grandfather's pocket money. www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] The gift tax charged to the student concerned an amount donated before the establishment of the 800,000 euro tax exemption for first-degree relatives. www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] Voluntary tax declarations cannot be revoked retroactively through an administrative appeal to the Dispute Resolution Directorate (DED). www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] Small amounts paid by parents or grandparents to children or grandchildren for daily expenses, such as pocket money, are not targeted. www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] The tax assessment was based on a voluntary declaration submitted by the student. www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] Tax authorities only investigate small transfers if a specific pattern of abusive practice is identified. www.flash.gr · www.ot.gr · seleo.gr
- [● 3 SOURCES] Money transfers via IRIS or traditional transfers are not of particular tax interest if they involve small amounts. www.flash.gr · www.ot.gr · seleo.gr