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[BUSINESS] · Greece, Netherlands · 4 sources

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Greek tax authority enforces donation tax on small family and friend transfers

The Independent Authority for Public Revenue (AADE) classified a series of modest cash gifts as taxable donations. In one case, a student from Evia who received a total of €700 from her grandfather while studying on the island of Chios was assessed a 10% tax of €70 and a fine of €35, bringing the payable amount to €105. Her appeal to the Dispute Resolution Directorate (ΔΕΔ) was rejected, and the tax and penalty stood.

In a separate matter, a bank transfer of €51,801 between two friends was also deemed a donation. AADE imposed a donation tax of €20,720.40 on the recipient, despite the funds being returned to the sender later the same day. The ΔΕΔ dismissed the friends’ appeal, reiterating that the tax liability arises the moment the money enters the beneficiary’s account and can only be nullified by a final court ruling.

Both decisions underline that Greek tax law treats any gratuitous monetary transfer as a donation from the instant of receipt, and that administrative reversal is not sufficient to cancel the tax obligation.

Entities

Dispute Resolution Directorate (ΔΕΔ) · Independent Authority for Public Revenue (AADE)

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