• 14.04.2026
• Current case law

Finanzgericht Rheinland-Pfalz, judgment of 4 December 2025 – 4 K 1564/24

“Easter gift” as a taxable gift

Facts of the case (simplified)

The claimant is the son of a very wealthy entrepreneur who passed away in 2023. Over a period of ten years, the father had already gifted the son more than € 600,000, thereby fully exhausting his personal tax allowance of € 400,000. At Easter 2015, the son received an additional € 20,000. The tax office treated this as a taxable gift and assessed gift tax in the amount of € 1,400. The claimant argued that, given his father’s financial circumstances, the transfer should be regarded as a customary token for a holiday and therefore as a tax-exempt occasional gift.

Court’s decision

The court upheld the tax office’s view and dismissed the claim. It made clear that a cash gift of € 20,000 at Easter does not qualify as a “customary occasional gift” (§ 13 (1) no. 14 of the German Inheritance and Gift Tax Act) and is therefore subject to gift tax. In assessing what is “customary,” the court applied an objective standard: what matters is not the donor’s financial situation, but rather the general perception of the broader public. The court thus rejected the argument that € 20,000 should be considered a minor token for a millionaire. Treating gifts differently depending on the donor’s wealth would violate the principle of equal treatment. To determine what still counts as “customary,” the court referred to the small-amount threshold under § 22 of the Act. As a result, only very small sums are considered tax-exempt - around € 800 in the case of children. Importantly, if this threshold is exceeded, the entire gift becomes taxable; there is no partial tax exemption.

Practical implications

The court has significantly narrowed the scope of tax exemption for occasional gifts. This (now final) decision is particularly relevant for wealthy families. The previously common practice of using occasional gifts in addition to regular tax allowances is associated with increased risk. Even long-standing traditions - such as larger cash gifts on recurring occasions - should be critically reviewed in light of this ruling. It is especially important to note that, where a gift is not considered “customary,” it is fully counted toward the gift tax allowances. If these allowances have already been exhausted, this can immediately result in a tax liability. However, the decision does not apply to gifts given on one-off, personally significant occasions such as weddings, passing important exams, or the birth of a child. In such cases, more substantial gifts may still be regarded as customary.