Gift deed: rules, gift tax and gifts in Denmark

Giving a gift to your children, grandchildren or close relatives is a natural and generous act. But above a certain size a gift is not just a gift. It is a disposition with tax consequences, possible inheritance-law implications and, in some cases, a requirement of registration.

This guide explains when a gift deed is necessary, what taxes apply to gifts in Denmark, and what to watch out for, whether you are giving or receiving.

What is a gift deed?

A gift deed (gavebrev) is a written document that documents that one person (the donor) transfers an asset or a sum of money to another (the recipient) without consideration.

Gift deeds are typically used for:

• Large money gifts to children or grandchildren
• The transfer of real property as a gift
• Gifts in connection with the transfer of a business
• An advance on inheritance (a gift given on the expectation that it is set off against the inheritance)
• A gift with a condition (for example that the gift is the recipient's separate property)

A gift deed is not required by law for all types of gift, but it is good practice and in some cases necessary.

When is a gift deed necessary?

Real property

If real property is transferred as a gift, the transfer must be documented by a deed and registered in the Land Register. A gift deed alone is not enough; it must be followed by a deed.

Large money gifts

Money gifts that exceed the tax-free threshold (see below) must be reported to the tax authorities, and the gift tax must be paid. A gift deed is recommended as documentation of the timing and the size of the amount.

A gift with a separate-property condition

If the donor wants the gift to be the recipient's separate property, that is, not to be included in a division of assets on divorce, this must appear expressly, and at the latest at the same time as the gift is given. It cannot be arranged orally or agreed afterwards.

Advance on inheritance

If the gift is given as an advance on inheritance, it should appear clearly from the gift deed that the amount is to be set off against the inheritance from the donor. If it is not documented, disputes can arise in the estate administration.

Gift tax: threshold and rates for 2026

In Denmark there is gift tax (under the Estate and Gift Tax Act) on gifts to close family. The gift tax is calculated when the gift exceeds the annual tax-free threshold. The threshold is adjusted every year, so always check the current rates on skat.dk.

Tax-free threshold (2026)

• Children, stepchildren, grandchildren and great-grandchildren, and parents: DKK 80,600
• Grandparents to grandchildren: DKK 80,600 (grandchildren are descendants of the grandparent)
• A partner, when you have lived together for at least 2 years: DKK 80,600
• A child-in-law (the child's spouse): a separate, lower threshold of DKK 28,200

Important: the threshold is per donor, per recipient, per calendar year. Two parents can therefore together give double the threshold to the same child in the same year without triggering tax.

Gift-tax rate

If the gift exceeds the threshold, gift tax of 15% is as a rule paid on the excess for gifts to children, stepchildren, grandchildren, parents, a partner and children-in-law. For gifts to stepparents and grandparents the rate is 36.25%.

Example: Two parents together give DKK 200,000 to their daughter. Each parent has a threshold of DKK 80,600 in 2026, that is, DKK 161,200 tax-free in total. The remaining DKK 38,800 is taxed at 15%, giving a gift tax of DKK 5,820.

Gift to a spouse

Gifts between spouses do not trigger gift tax; there is no amount limit here. Note, however, that larger dispositions between spouses can affect other heirs' rights, including the forced heirship of direct descendants. Larger gifts between spouses should be clarified with an adviser.

Gift to others

If gifts are given to people outside the close family, the gift is as a rule taxable income for the recipient rather than covered by the gift-tax rules.

What should a gift deed contain?

1. The parties

The donor's and recipient's full name, CPR number and address.

2. Description of the gift

Describe the gift precisely:

• Money gift: amount and currency
• Real property: address, land-registry number and share (for a partial transfer)
• Other assets: description and any valuation

3. The date of the transfer

The date is decisive for the tax calculation, because the gift is attributed to the calendar year in which it is given.

4. The nature of the gift

State expressly:

• Is it a gift (no consideration)?
• Is it an advance on inheritance (to be set off against the inheritance)?
• Is there a separate-property condition (the gift is the recipient's separate property)?

5. Separate-property condition (if relevant)

If the donor wants the gift to be the recipient's separate property, it must appear clearly, for example:

"The gift amount is the recipient's full separate property and is not included in any division of assets on separation or divorce."

Such a condition is binding but requires no further formalities, only that it appears in the gift deed and is stipulated at the latest at the same time as the gift.

6. Signatures

Both the donor and the recipient should sign. This documents that both are aware of the disposition.

Advance on inheritance: the gift's consequences for the inheritance

An advance on inheritance is a gift that a testator gives to an heir on the understanding that the amount is set off against the heir's share when the testator dies.

An advance on inheritance should be documented in a gift deed that clearly states that the gift is given as an advance. The amount is then set off against the heir's share in the estate administration.

Important: the set-off for an advance on inheritance is typically calculated on the nominal value at the time of the gift, not an inflation-adjusted or market-adjusted value. This can produce uneven distributions if many years have passed. If you want a particular adjustment model (for example indexation), it should appear in the gift deed.

Gift of real property

If real property is transferred as a gift, there are several special matters:

Deed and registration: the transfer must be documented in a deed and registered in the Land Register. The registration duty for a deed consists of a fixed fee plus a variable fee of 0.6%, which for a gift is calculated on the latest public property valuation.

Transfer below market value: if the property is transferred below market value, the difference between the market value and the price paid can be regarded as a gift that can trigger gift tax. The transfer can also trigger property-gains tax for the donor.

Transferring real property as a gift usually requires advice from a lawyer and an accountant.

Reporting and payment of gift tax

The gift tax is reported to the tax authorities, and the deadline is 1 May in the year after the gift is given.

The tax liability rests on the recipient, but the donor is jointly liable for the tax. Failure to report and pay can lead to interest and possibly additional tax.

Frequently asked questions about gift deeds

Is there gift tax on a gift to a partner?

A partner you have lived with for at least 2 years immediately before the gift (or have or are expecting a child with) is covered by the gift-tax rules on a par with children. That means a threshold of DKK 80,600 in 2026 and 15% on the excess. Only spouses can give each other gifts tax-free with no amount limit at all.

Must a gift deed be confirmed by a notary?

No, a gift deed as a rule does not require notary confirmation. For real property it is instead the deed that must be registered. A signed gift deed is in itself legally binding.

What happens if the gift is not documented?

If you have given a larger amount without written documentation, it can be hard, in an estate administration or a tax audit, to prove that the amount was a gift and not a loan. Written documentation is always preferable.

Can the donor undo a gift?

A completed gift is as a rule irrevocable. Revocation is only possible in very special cases, and it is a narrow exception that should be clarified with a lawyer.

Can you give a gift to a company?

Gifts to companies (ApS, A/S) are not covered by the gift-tax rules but are typically treated as taxable income for the company. Transfers between related parties can also trigger special tax rules.

Conclusion

Gift deeds are simple documents, but with major legal consequences. Clear documentation of the gift, including any separate-property condition and advance-on-inheritance character, prevents disputes, ensures a correct tax calculation and protects both the donor and the recipient.

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The content of this article is for guidance only and does not constitute legal advice. See the tax authorities' current guidance on skat.dk for current thresholds and tax rates.