Parental benefits: 8,000 cancelled over Tax-Free violations – AADE imposes taxes up to 20%

More than 8,000 parental benefits and gifts were cancelled between January and July 2025 after the Hellenic Independent Public Revenue Authority (AADE) uncovered widespread violations of the rules governing tax-free transfers.

Although Greek law provides a tax-free allowance of €800,000 for transfers between first-degree relatives (parents, children, and grandchildren), auditors identified numerous breaches, including cash donations and fictitious transfers to ineligible beneficiaries.

Those involved are now being required to pay back taxes, with charges of up to 10% imposed on cash transactions and up to 20% on chain transfers or sham donations.

According to AADE, many citizens attempted to sidestep the law by depositing cash directly into relatives’ accounts rather than making the required bank transfers, while others routed money through third parties to reach non-eligible relatives. Such cases not only trigger penalties but also extend audits into the donors’ tax returns, sometimes reaching back several years.

AADE emphasized that property transfers remain tax-free only if procedures are strictly followed.

The authority has also expanded its audits to real estate transfers, checking whether sellers complied with the obligation to present an ENFIA certificate. Thousands of contracts signed in 2024 are now under scrutiny to verify that property taxes from the past five years were paid. Notaries and land registry offices that fail to enforce this requirement face fines of €100 to €1,000, which double for repeat violations.

The aim, according to AADE, is to close loopholes in property taxation and ensure that every transfer complies fully with the law.