A court ruling in Thessaloniki challenges existing tax regulations regarding parental financial gifts, potentially allowing for tax exemptions on donations up to €800,000 even before the transfer occurs.
A recent ruling from the Administrative Court of Thessaloniki has significant implications for the tax treatment of parental financial donations in Greece. The court's decision allows for the declaration of these monetary gifts to be submitted to the Independent Authority for Public Revenue (AADE) prior to the actual transfer of funds, addressing a critical interpretation issue regarding the timing of declarations. The ruling departs from previous guidelines and potentially opens the door for parents to secure the tax-exempt allowance of €800,000 without following traditional transfer protocols.
The court's ruling, which specifically references decision number 1703/2025 published on January 9, 2026, has sparked debates among legal and tax professionals. The judgment emphasizes the substance of the donation rather than the formalities involved in the declaration process. Previously, restrictions dictated that the declaration and the transfer needed to be aligned closely in time, which limited the practical ability of parents to utilize the available tax-free allowance effectively. By overturning this interpretation, the court has provided a more flexible approach that could benefit many families.
