Possible reduction in jubilee tonnage as of Jan. 1, 2023

It is possible to reduce the gift exemption for a private home from January 1, 2023. This was announced by the cabinet. Currently, parents can still give a one-time tax-free gift of 106,671 euros - the jubilee bonus - to children between the ages of 18 and 40 to purchase their own home. It seems logical to keep the maximum amount at 27,231 euros next year.

This amount corresponds to the amount of the single increased exemption for gifts between parents and children, making this according to the cabinet understandable to consumers. The cabinet actually wanted to remove the gift exemption for owner-occupied homes, but it turned out that this was not possible before 2024 due to the necessary adjustments at the Tax Administration. After the crocus recess, the House of Representatives will be informed about the cabinet plans for the jubilee bonus.

More expensive home
From a report from research firm SEO late last year revealed that the gift exemption for owner-occupied homes is used by a portion of recipients primarily to buy a more expensive home. The exemption had been broadened as of Jan. 1, 2017, with the expectation that individuals under the age of 40 would use it for debt repayment.

Source: KNB.EN