This year only, it is still possible to make a gift of an increased amount to grandchildren, free of gift tax, for the purpose of purchasing their own home.
It’s still difficult for young people to buy a home. Isn’t it lovely, as a grandparent, to be able to lend a helping hand?
This year, the so-called ‘jubelton’ has been reduced from €106,671 to €28,947. From 2024, the increased gift tax allowance will be completely abolished, and grandparents will only be able to gift a small amount tax-free to their grandchildren (€2,418 in 2023).
Conditions
A condition for the exemption is that the grandchild must be aged between 18 and 40 at the time of the gift. The amount of the gift must be paid in 2023, but the grandchild then has a further two years in which to use the money to purchase a home. The grandchildren may also use the money for home improvements or to pay off an existing mortgage on their own home. A gift tax return claiming the increased exemption must be filed by 1 March 2024 at the latest.
Was a gift made last year towards the value of your own home, but the full amount of the tax-free allowance was not donated? If so, it is possible to top up the gift. Read more about this in our article: Supplement donation?