In Greece, recent revelations have emerged regarding the exploitation of taxation laws concerning parental gifts, specifically under article 56 of law 4839/2021, which allows for a tax-free limit of 800,000 euros. Taxpayers who are found to have circumvented these provisions, particularly through 'triangular' gifts among close family members—mainly between siblings—are now facing hefty fines and penalties. Authorities have noted a trend where significant sums are transferred indirectly to avoid the 20% tax applied to direct sibling gifts, prompting a crackdown.

The mechanism of these triangular gifts involves a deliberate strategy among siblings to sidestep taxation. In practice, the intention is to channel substantial financial contributions among family members without incurring tax liabilities. For instance, instead of a direct transfer from one sibling to another triggering taxation, the funds might be passed through the account of a third family member. This method effectively avoids the financial burden of taxation on those gifts, which has raised alarms for tax authorities who are now intensifying their scrutiny on such transactions.

The implications of this crackdown not only represent potential financial strain for those involved in these tax-evading strategies but also signal a broader enforcement of tax regulations within Greece. As the government continues to tighten its grip on tax compliance, families must now reevaluate their approaches to financial transfers within familial contexts to remain compliant with tax laws and avoid the repercussions of audit and penalties.