You may be wondering…

• Who exactly qualifies for a tax exemption?

• Does it apply only to parents and children, or also to siblings?

• What if I live with a partner but we’re not married?

• Are there value limits for exemptions?

Clients ask me…

Who is exempt from paying tax on gifts?
Exemptions from income tax apply to:

• gifts from relatives in the direct line (parents, children, grandparents, grandchildren),

• gifts from relatives in the collateral line (siblings, uncles, aunts, nieces, nephews),

• gifts between spouses,

• gifts from a person with whom the donee has lived in the same household for at least 1 year, where care is provided.

And what about other cases?
If the donor is a “non-relative,” gifts are exempt only up to CZK 15,000 per year. Anything above this threshold is taxable income.

Exemptions in a nutshell

• Family: direct and collateral line, plus spouses.

• Household members: people living together for at least one year and providing care.

• Non-relatives: gifts exempt only up to CZK 15,000 per year.

• Applies to all forms of gifts – movables, money, and real estate.

Common mistakes

1. Thinking gift tax was abolished and nothing needs to be reported.

2. Not knowing about collateral line exemptions. Many unnecessarily pay tax, even though siblings are exempt.

3. Overlooking the CZK 15,000 threshold for non-relatives. Above it, you must declare the gift.

4. Household exemptions without proof. You need evidence (lease contract, shared accounts) to prove cohabitation.

Step-by-step process

1. Identify the donor. If they are family or a spouse → exemption.

2. If not, calculate the value of gifts in the year.

3. If under CZK 15,000, no tax applies. Above that, declare the gift.

4. For household exemptions, prepare evidence of cohabitation.

Real-life example

A client received CZK 500,000 from his sister to help buy a flat. Because the donor was in the collateral line, the gift was completely exempt from tax. Another client, however, received CZK 50,000 from a friend. Because the donor was a “non-relative” and the amount exceeded CZK 15,000, he had to declare and pay tax.

Why to be cautious

The tax office can access land register data and bank accounts. If you fail to declare a taxable gift, you may face not only back taxes but also penalties.

Lawyer’s recommendation

• If the donor is family, you’re usually safe – but check carefully which category they fall into.

• For gifts from non-relatives, always watch the CZK 15,000 limit.

• For unmarried partners, be prepared to prove shared household status.

Checklist:
☑ Donor is family or spouse → exempt
☑ If not, value of gifts doesn’t exceed CZK 15,000
☑ If above, gift is declared in income tax return
☑ For partners/households, I have evidence ready

FAQ

Are gifts from siblings exempt?
Yes – siblings are in the collateral line, which is exempt.

What if I get a gift from my partner but we’re not married?
If you can prove you’ve lived together for at least a year in the same household, the gift is exempt.

Does the CZK 15,000 threshold apply to family gifts?
No – the threshold applies only to non-relatives. Gifts from family members have no limit.