AADE clarifies taxation rules for IRIS money transfers

The Independent Authority for Public Revenue (AADE) has provided clarifications regarding the taxation of money transfers made via the IRIS system. The tax authority distinguishes between routine family support, such as pocket money or student expenses, and formal donations or parental provisions.

Small, irregular transfers between close relatives for daily needs do not trigger tax scrutiny. However, patterns involving high frequencies, identical large amounts, or sums that deviate significantly from typical micro-expenses may attract attention.

For first-degree relatives (parents, children, spouses, and grandchildren), donations and parental provisions are tax-exempt up to a limit of €800,000, provided the transfers are made through the banking system and the appropriate electronic declaration is submitted via myPROPERTY. Amounts exceeding €800,000 are subject to a 10% tax.

Users are cautioned against mislabeling transactions in the system; incorrectly marking a transfer as a ‘donation’ or ‘loan’ can trigger automatic taxation of up to 40%. Additionally, for self-employed professionals, IRIS payments are considered business income and are subject to standard taxation.