Tax and reporting for monetary gifts 2025 – rules in Sweden, the EU and internationally
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Updated: June 7, 2025 • Reading time: about 13 min
Table of contents
- Introduction
- Sweden after the abolition of the gift tax
- EU regulations and money laundering directives
- International overview – countries with gift tax 2025
- Banks' AML/KYC requirements
- Practical scenarios & calculations
- FAQ: Frequently Asked Questions
- Pre-transfer checklist
- Conclusion
Introduction
Since Sweden abolished the gift tax in 2005, many people have asked whether large gifts of money are really tax-free. The answer is usually yes – but international regulations, banks' anti-money laundering (AML) requirements and some countries' gift tax may still require reporting or trigger tax. Here you will get an updated overview of what applies in 2025 in Sweden, the EU and important foreign jurisdictions, plus a practical checklist.
Sweden after the abolition of the gift tax
What about today?
- The gift tax was abolished on January 1, 2005 (Act 2004:1278).
- No obligation to declare the gift – neither for the donor nor the recipient.
- Exception: controlled gifts where the Swedish Tax Agency requires documentation (e.g. distribution of unlisted shares within the waiting period).
- Income Tax Act (IL) 8:2 – gifts are tax-free for the recipient.
Capital gains trap
Are you giving shares instead of money? The recipient takes over the donor's cost → can trigger high taxes upon sale. Cash gifts avoid this trap and are the theme of this article.
Reporting limits within Sweden
| Authority | Limit | What is required? |
|---|---|---|
| Bank / Financial institution | 150,000 SEK | Company director certificate for AML |
| Cash transaction | 50,000 SEK | Special control task (rare for gift) |
EU regulations and money laundering directive (AML 6)
Why the EU matters despite tax freedom in Sweden
When money crosses borders within the EU or EEA, you are affected by:
- Anti-Money Laundering Directive (AML 6) – banks must report “unusual transactions”.
- EU regulation on cross-border payments – transparency of fees and currency exchange.
- DAC 7 – expands automatic information exchange between tax authorities.
Even if no tax is paid, the Swedish Tax Agency can receive automatic reports of large gifts that reach recipients in, for example, Spain or France.
International overview – countries with gift tax 2025
Top 5 commonly affected recipient countries
| Country | Gift tax limit (annual) | Notification? |
|---|---|---|
| United States (federal) | $18,000 per recipient | Yes, IRS Form 709 |
| Germany | €400,000 for children | Yes, local Finanzamt |
| France | €131,865 for children | Yes, Declaration of donation |
| UK | £0 (no married tax) but IHT 7 year rule | HMRC IHT 403 on death |
| Japanese | 1.1 million JPY | Yes, tax office within a month |
Practical consequences
Are you going to give 500,000 SEK (≈46,000 USD) to a child in California? As a donor, you fill out IRS 709 (federal gift tax return). No tax if you are under the Lifetime Exemption 13.61 m USD (2025) but reporting is still mandatory.
Banks' AML/KYC requirements
How it works in practice
- Know Your Customer (KYC) – the bank asks you to confirm your identity and the origin of the funds.
- Purpose check – “What is the purpose of the transaction?” Enter “monetary gift to child”.
- Paper trail – signed Gift Deed + bank statement is often enough.
- Reporting limit – SE banks report transactions > €15,000 (or equivalent).
Tips for smooth handling
- Make one larger transfer instead of many small ones – reduces flags.
- Have the gift certificate ready in pdf upon request.
- Explain the relationship briefly: “Parent → Child gift”.
Practical scenarios & calculations
Scenario 1: Swedish donor → Swedish recipient
Amount: SEK 300,000. Tax: 0. Reporting: The bank asks AML questions; Gift Deed is sufficient as evidence.
Scenario 2: Swedish donor → recipient in Spain
Amount: 600,000 SEK. Tax: Varies by Spanish region (e.g. Madrid 0%, Valencia 7 – 34%). Action: Recipient leaves Modelo 651 within 30 days.
Scenario 3: Swedish donor → recipient in the USA
Amount: 1,000,000 SEK ≈ 92,000 USD. Tax: No federal gift tax due to Lifetime Exemption, but donor reports IRS Form 709. Bank: FinCEN rule may require recipient account KYC.
Scenario 4: Recipient forwards to partner
Money becomes the recipient's separate property if there is a clause, but can become marital property if transferred. Advice: maintain traceability.
FAQ: Frequently Asked Questions
Do I have to pay tax in Sweden on the cash gift?
No, not since the gift tax was abolished in 2005.
Do I have to report the gift to the Tax Agency?
Not normally. However, banks report large transactions according to AML.
Does the recipient need to pay taxes abroad?
Yes, in some countries. Check the respective gift tax limit and notification.
Is a Swedish gift certificate in a foreign bank sufficient?
Yes, if it is in English and signed. Supplement with passport copies if necessary.
Pre-transfer checklist
Amount in SEK and the corresponding currency quoted
Marriage Deed signed and saved as pdf
Checked the recipient country's gift tax rules
Bank informed of the purpose of the transaction
Any filings (IRS 709, Modelo 651 etc.) prepared
Conclusion
Giving money as a gift is tax-free in Sweden , but international rules make it wise to document the transaction. With a legally reviewed Gift Deed in English, keeping an eye on the recipient country's regulations and the bank's AML requirements, the process becomes simple and secure. Do you need a ready-made template? Buy our Gift Deed template for 49 SEK here - fill in, sign and send the money securely today.
