AAΔΕ will check family transfers: when money is recognized as a gift

Transfers of money between relatives and joint bank account transactions are increasingly attracting attention AAΔΕ: Ordinary family assistance may be considered a gift and subject to tax.

Transferring money between relatives in Greece, it is not always perceived by the tax authorities as harmless family assistance. If the recipient cannot confirm the origin of the funds and his participation in the formation of the amount, the transaction may be qualified as donation or parental property transfer with corresponding tax consequences.

Special attention AAΔΕ focuses on large transfers between close relatives, the movement of money between joint accounts and transactions where funds are sequentially transferred from one family member to another.

The mere fact that a person is listed as a co-owner of a bank account does not automatically mean that he is the real owner of all the funds on it. Another thing is more important for the tax authorities: who contributed the money, where it came from and who ultimately benefited economically.

A joint account does not mean you are entitled to all the money.

The reason for increased attention to such operations was the practice Tax Dispute Resolution Service (Tax Dispute Resolution Service). One of the cases involved the transfer of 240 thousand euros from a joint family account, where parents and children were indicated, to a new joint account of a son and his wife.

The tax authorities considered that the transaction could be recognized as a gift: the son did not prove that he participated in the formation of the initial capital, and after the transfer he received actual access to the money. The formal status of a co-owner of the account did not prove to be a sufficient argument.

That is why it is better to accompany large family transfers with bank statements, documents on the origin of money, contracts, declarations and other evidence. Otherwise, a seemingly harmless operation may raise questions after the translation is completed. The state, as usual, trusts the family until it sees the movement of funds.

When does the limit of 800 thousand euros apply?

For cash gifts and parental transfers between first category relatives, including parents, children, spouses and grandchildren, there is a non-taxable limit of up to 800 thousand euros. But the key condition is that the transfer must go through the banking system and be properly declared.

Official rules require confirmation of a bank transfer between the accounts of the participants in the transaction. When transferring through Greek banks, confirmation is usually verified through bank details, but if necessary, the taxpayer must provide proof of the transfer. To purchase property through a parental transfer, additional documents may be required to confirm the transaction and the path of the money.

Official procedure myProperty

Transferring cash is much riskier. In this case, the benefit of up to 800 thousand euros does not apply automatically, and a cash parental transfer or a gift between relatives of the first category may be taxed at the rate 10%. For relatives of other categories, the rates are higher and can reach up to 40%.

AAΔΕ Clarifications on Gift and Parental Transfer Taxes

Which operations are especially noticeable?

• large transfers between relatives without a clear purpose;
• moving money from one joint account to another;
• chain of transfers between several family members;
• receipts that do not correspond to the income or financial profile of the recipient;
• cash transfer without bank trace and without declaration.

For taxpayers, the conclusion is simple: family relationships in and of themselves do not negate the obligation to explain the movement of money. If we are talking about a large amount, it is safer to register the transfer as a gift or parental transfer through the bank in advance and submit the declaration on time.

AAΔΕ in February 2025 separately clarified that money received through a gift or parental transfer can be used to cover tax “tehmiriya” only if there is proven receipt of funds before related expenses and with confirmed taxation or tax exemption.

Clarification AAΔΕ E.2009/2025

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