Tax guidelines and regulations for large money transfers around Europe
Tax guidelines and regulations for large money transfers in Europe.
Whatever your reasons for sending money around Europe, there’s a lot to consider. If your recipient lives in a country with a gift tax or if you’re sending money for business purposes, they may be required to pay taxes on the transfer.
We’ve gathered the tax info that goes along with moving large amounts of money to Europe.
How Europe regulates large remittances
Each country in Europe has its own gift tax, which is the tax your recipient pays when you gift money or property valued above a specified amount. Some countries exempt gifts from the burden of taxation altogether, while others consider the relationship of you to your gift beneficiary.
Here’s a general rundown of how European countries handle the gift tax at the time of writing.
|Country||Gift size exempt from taxation|
|Albania||No gift tax|
|Andorra||No gift tax|
|Armenia||No gift tax|
|Austria||No gift tax|
|Azerbaijan||Exempt from gift tax if received from family members|
|Belarus||Tax law provides exemption for inheritances and partial exemption for general gifts|
|Belgium||3–30% of the gift amount|
|Bosnia and Herzegovina||2–10% of the gift amount|
|Bulgaria||0.4–0.8% on inheritances from family members and 3.3–6.6% for other beneficiaries|
|Croatia||5% if gift is worth more than HRK50,000|
|Cyprus||No gift tax|
|Czech Republic||1–40% depending on degree of family relationship|
|Denmark||No gift tax|
|Estonia||No gift tax|
|Finland||€1 to €4,999|
|France||5–45% of gift amount, depending on degree of relationship|
|Georgia||No gift tax, though inheritance taxes depend on degree of relationship|
|Germany||Remote relatives or family typically pay higher taxes|
|Greece||Varies by relationship of giver to recipient|
|Hungary||2–40% of gift amount, depending on degree of relationship|
|Iceland||Gifts for special occasions are exempt provided they’re “not of extraordinary value”|
|Ireland||Varies by relationship of giver to recipient|
|Italy||Up to €1 million exempt for spouses, children and grandchildren|
|Kazakhstan||No gift tax|
|Latvia||No gift tax|
|Liechtenstein||No gift tax|
|Lithuania||€2,500 provided that gifts come from close relatives|
|Luxembourg||0–48% of gift amount, depending on relationship to beneficiary|
|Macedonia||2–5% of gift amount, depending on relationship to beneficiary|
|Malta||No gift tax|
|Moldova||No gift tax|
|Monaco||Rates vary depending on relationship to beneficiary|
|Montenegro||No gift tax|
|Netherlands||Exempt up to €4,479, depending on relationship to beneficiary, or up to €22,379 once in a child’s lifetime|
|Norway||No gift tax|
|Poland||Rates vary by relationship of giver to recipient|
|Portugal||No gift tax|
|Romania||No gift tax|
|Russia||No gift tax|
|San Marino||Up to €1 million exempt for spouses, children and grandchildren|
|Serbia||1.5–2.5%, depending on relationship to beneficiary|
|Slovakia||No gift tax|
|Slovenia||€5,000 for immediate successors|
|Spain||7.65–34%, depending on value and relationship to beneficiary|
|Sweden||No gift tax|
|Switzerland||No gift tax|
|Turkey||10–30%, depending on the gift’s value and relationship to beneficiary|
|Ukraine||No gift tax|
|United Kingdom||No gift tax|
|Vatican City||Up to €1 million exempt for spouses, children and grandchildren|
Do I have to report large transfers out of Ireland?
You personally won’t have to report any amount of money you transfer as there’s no limit to the amount you transfer in or out of Ireland. However, transfers over €10,000 should be declared to the European Union authorities, which banks and money transfer specialists are likely to handle.
You usually won’t need to do anything on top of this, but it’s a good idea to keep all your records of the transfer just in case.
How will my recipient receive my remittance in Europe?
Your many options for sending money to Europe include bank-to-bank transfers, cash pick-ups and transfers to mobile wallets.
If your friends or family are picking up your money in person, they may need to show government-issued ID or a transaction confirmation number to prove they’re your intended recipient. For electronic transfers to their bank account, they won’t need to provide any additional information.
Confirm with your bank or independent money transfer provider the exact information your friends and family might need to receive your funds.
As with all money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
DISCLAIMER: This article is general advice. It does not consider your own personal circumstances and may not be applicable to you. You should obtain professional advice and consider your own situation before acting on anything contained in our article.
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