Since 2022, the popular tax-free gift for a home, also known as the jubelton, has been abolished. This means that parents, grandparents, or other generous donors can no longer give a large amount tax-free to their (grand)children for the purchase of a home. However, for those who received such a gift before 2022, there are still some important rules and deadlines to consider.
What was the jubelton?
The jubelton was a scheme whereby parents could gift their children a large sum of money tax-free for the purchase of their own home. This amount could be as much as €106,671. The scheme was intended to help young people buy their first house, but it was abolished to reduce inequality in the housing market.
Deadline for spending the donation
For those who received a tax-free gift for a home before 2022, they must spend the gifted amount within three calendar years. This means that if you received a gift in 2022, you have until 31 December 2025 to use the amount for the purchase, renovation, or repayment of a mortgage on a home.
What if the donation is not spent on time?
If the gifted amount is not spent within the stipulated period, the recipient must still pay gift tax on the unspent amount. It is therefore essential to plan carefully and ensure that the money is used in a timely manner for the own home.
Alternatives to tax-free gifting
Although the jubelton has been abolished, there are still other ways to gift money tax-free. For example, parents can still gift a one-off amount of €32,195 (2025) tax-free to their children. This amount can be spent freely, but it is important to understand the conditions and rules well to avoid any tax assessments.
Conclusion
The abolition of the jubelton has significantly limited the options for tax-free gifting for a private residence. For those who received a gift before 2022, it is crucial to spend the amount within three years to avoid gift tax. For new gifts, there are still options available, but it is important to be well-informed about the current rules and exemptions.
Do you have questions about gifts or other tax matters? Please feel free to contact us.
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