Must gifts to grandchildren living in EU be declared to tax French authorities?
Tax-free limits are different between each type of family member
There are allowances for gifts to grandchildren
Olena Yakobchuk / Shutterstock
Reader Question: We are considering giving €8,000 to each of our two grandchildren who live in Belgium. What, if any, notification do we have to give (and to whom) for tax purposes?
A gift is taxable in France if the giver lives in France, even if the recipient lives abroad. In some cases, gift tax may also be due in the country where the recipient lives, however from our research this does not appear to be the case in Belgium. Official Belgian sites say gifts can be declared optionally, but if not then they are accounted for in relation to inheritance tax if the giver dies within three years (five in the Wallonia region). There is no Belgian inheritance tax on French-situated property of a French resident.
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Gifts in France
Having said this, gifts (of any kind) to a grandchild benefit from an allowance of €31,865 per child, so no tax is due in your scenario. In fact, if you (the giver) are aged under 80 and the recipient is an adult, this can also be combined with the same allowance again, relating to ‘family money gifts’. These tax-free amounts renew every 15 years.
However, other than ordinary small gifts, such as birthday presents, according to the letter of the law all gifts are declarable, even if no tax is due.
Official sites say this can be done by the recipient via the non-residents’ tax office, or by the giver to their tax office if the gift is established sous seing privé, which refers to a simple document taking note of the gift, written up and signed by both parties, and dated. If you wish to double check, a quick query to your tax office via private messaging may be advisable.
Read more: Consider the tax implications of making a gift in France
