Gift to a partner: Tax allowance and limits

A gift to a partner is not automatically tax-free in Germany. Whether gift tax is due, and how much, depends on whether you are married, in a registered civil partnership or living together unmarried. The differences are larger than many people expect.

The key points at a glance

• The allowance depends on the family or kinship relationship, not on the value of the gift alone.
• Spouses and registered civil partners have the highest allowance, namely 500,000 euros.
• Unmarried partners generally fall into other persons of tax class III, with an allowance of 20,000 euros.
• The taxable part is calculated only after the allowance has been deducted, and then the tax rates for the relevant class apply.
• Before any larger transfer, check with the tax office whether a notification is required and whether earlier gifts count.

Which allowance applies to my partner?

The allowances are set out in section 16 of the German Inheritance and Gift Tax Act. The table reproduces the amounts as they appear in the statutory text on gesetze-im-internet.de.

The table shows only the allowance. Which tax class applies to a particular recipient is determined by the statute. If you are unsure, the local tax office can give you a binding answer.

Why marital status makes the difference

Married partners and registered civil partners belong to a group with a very high allowance. Unmarried partners receive only 20,000 euros. A transfer of 50,000 euros to an unmarried partner can therefore trigger a tax liability at a comparatively small amount.

The tax rates rise with the tax class and with the size of the taxable acquisition. For tax class III, the rates are considerably higher than for tax class I. The specific rates are set out in the Inheritance and Gift Tax Act and depend on the taxable amount. For this reason, the allowance alone does not tell you how heavy the burden will be.

How do I calculate an example?

The following examples only illustrate the logic of the allowance. They are not a tax calculation.

1. Assumption: you give your unmarried partner 50,000 euros. The allowance is 20,000 euros, so the taxable part is 30,000 euros.
2. Assumption: your married partner receives 300,000 euros. This amount is within the allowance of 500,000 euros, provided no earlier gifts use up that allowance.
3. Assumption: a gift consists of a property and cash. Both values are added together, and only the excess over the allowance is taxable.

How earlier gifts affect the allowance is governed by the Inheritance and Gift Tax Act. The tax office carries out the calculation in each case, and it determines the value of property under the statutory valuation rules.

Which questions should you clarify before a transfer?

Before money or a property changes hands, a short check is worthwhile. On the tax side, this covers your marital status, earlier gifts and the value of the object transferred. On the personal side, it covers whether both partners share the same understanding of the gift and whether the relationship is stable enough for the coming years.

Another question is whether the gift is connected to other financial matters. If one partner finances a shared home, both should agree who is entitled to it in the event of a separation, and whether a loan between the partners has been agreed. Such arrangements prevent disputes when circumstances change, and they make the transfer easier to document for the tax office.

A written contract helps to record purpose, amount and timing. It does not replace a tax review, but it creates clarity for both sides. If you are uncertain, have the draft reviewed before anything is signed.

Step by step: how to check your gift

1. Clarify your marital status: married, registered civil partnership or unmarried.
2. List all earlier gifts to the same person, with date and value.
3. Determine the value of the gift, and for property obtain a reliable valuation.
4. Ask the competent tax office whether a notification is required and in which form, before you transfer anything.
5. Keep the documents together with the gift agreement in a safe place.

What about property and money in an account?

With money, the amount is clear. With a plot of land or a condominium, the value of the transferred asset counts, not the price paid in the past. If you transfer only a share, only that share needs to be valued. Valuation is often the most demanding step, so early preparation is worthwhile.

When a gift makes sense and when it does not

A gift fits a stable partnership in which both sides understand the consequences. It is generally final, and whoever transfers assets gives up control over them. Building wealth together through a prenuptial agreement or a separation of property can offer another route, as explained in the German article Gütertrennung oder Zugewinn: Was bei der Heirat zählt.

A gift is less sensible if the relationship is uncertain, if important assets are not yet clarified, or if the giver still depends on that wealth. In such cases, it is better to seek advice before anything is transferred.

Frequently asked questions

Do I have to report every gift to the tax office?

Whether a notification is required depends on the transaction. Ask the competent tax office before you transfer money or assets. This avoids follow-up questions and delays.

Do small presents count?

Whether smaller transfers are added together depends on the individual case. When in doubt, document what you have transferred and clarify the question with the tax office.

What applies if I transfer only part of a house?

Then the transferred value counts. The valuation follows the Inheritance and Gift Tax Act, and the tax office determines it. An expert valuation can help make the figures traceable.

Does a gift replace a prenuptial agreement?

No. A gift covers a single transfer, while a prenuptial agreement governs the financial order of a marriage. Both can work together, but neither replaces the other. More on this is in the German article Ehevertrag vor der Heirat: Wann er sich lohnt.

Does living together change my marital status?

No. Living together does not change your marital status. What matters is the legal relationship: marriage, registered civil partnership or neither. An unmarried couple is not treated as spouses for tax purposes, even if they share a home. Marriage changes the situation considerably, because the higher allowance then applies.

What to do now

1. Check your marital status and the allowance group before you calculate any figure.
2. Document all transfers, including earlier ones, with date and value.
3. Have the value of any property assessed before you transfer a physical asset.
4. Clarify the notification and the tax consequences with the tax office before you sign.

Related guides

• Family, partnership and money: the overview for young adults
• Separation of property or community of accrued gains: what counts at marriage
• Prenuptial agreement: when it makes sense
• Partnership and BAföG: is your partner income counted?

Sources: Section 16 ErbStG, allowances (German text, gesetze-im-internet.de, accessed November 2026)

Last updated: November 2026. This guide is general information, not individual advice.