How Much Can Be Gifted?

Any person can gift up to €3,000 per calendar year to any other person. This €3,000 is completely exempt from CAT for the recipient. There is no limit on:

• How many people you can give €3,000 to, or
• How many people you can receive €3,000 from

 

It’s “Per Giver, Per Recipient, Per Year”

The rule applies from any one giver (disponer) to any one recipient (donee) in a calendar year. This means:

• You can receive €3,000 from each of several different people in the same year – all CAT‑free
• You can give €3,000 to each of several different people in the same year – all CAT‑free for them

Example: If four different people each gift you €3,000 in the same year, you receive €12,000 in total, and none of it is subject to CAT.
 

Gifts Only – Not Inheritances

The Small Gift Exemption applies only to lifetime gifts. It does not apply to inheritances received on death.
 

How It Interacts With CAT Thresholds

Current CAT thresholds (depending on relationship) are:

• €400,000 – typically parent to child
• €40,000 – e.g. grandparent to grandchild, siblings, aunt/uncle to niece/nephew
• €20,000 – all other relationships

The first €3,000 per year, per giver is:

• Not taxed, and
• Ignored for aggregation when assessing how much of your CAT threshold has been used

Only the amount over €3,000 per year from each giver counts towards your CAT threshold.
 

Do You Need to File a CAT Return?

If you only receive gifts within the €3,000 exemption, you do not need to file a CAT return. A CAT return (Form IT38) is required only when:

• The taxable value of gifts or inheritances you receive (after exemptions) exceeds 80% of your relevant CAT group threshold, and
• At that point, you claim the €3,000 exemption in the return

 

A Common Estate‑Planning Tool

Regular annual gifts of up to €3,000 per person, per year are a widely used and effective way for:

• Parents
• Grandparents
• Other family members

to transfer value over time without:

• Triggering CAT
• Using up the main CAT thresholds, or
• Creating any CAT filing obligations

 
If you are interested in tax planning advice or would like to discuss how the Small Gift Exemption could form part of your overall estate strategy, please contact our team. We would be happy to assist.