Many couples today live in informal relationships, run their households together, and treat each other as close relatives. From an everyday perspective, this is natural. However, from the perspective of the tax office, the situation is different – if you are in an informal relationship, to the tax office, you are strangers. This difference has very specific consequences, especially when it comes to money transferred between partners.
Why does this matter?
The most painful area is donations. In an informal relationship, the transfer of funds can be treated by the government in a way that many people don't expect.
If you make a gift to your partner, to whom you are not married, the tax office will treat it as a gift between strangers – from the so-called third tax bracket. In other words, the closeness of the relationship itself is irrelevant, because formal status is what matters.
Third tax group
In the case of donations treated as being made between strangers, different rules apply than in relationships formally considered to be the closest.
In practice, the key point is that the tax-free amount is only PLN 5,733 over the last five years. This is a relatively low limit, especially if donations are intended to involve real financial support, larger transfers, or transfers of funds in multiple installments.
What happens when you exceed the limit?
If the transferred funds exceed the indicated limit, there is a real tax risk.
Funds above this amount may be taxed at a rate of up to 20%. This comes as a surprise to many people, as tax is often not a consideration in partnerships, and the tax office may view such a transaction as purely formal.
Gifts between partners without marriage – a common mistake
Donations between life partners in informal relationships are one of the most common tax traps. Problems most often arise when the donation is intended to be "simply helpful," only to later discover that the tax office may classify it as a taxable gift.
If you have any doubts, it's worth discussing the matter beforehand.
If you want to give money to a loved one and you are not sure whether the tax office will demand tax, a consultation is a safe step.
It's worth consulting a tax advisor to assess the situation and avoid unpleasant consequences. Details are often crucial in taxes, and a single decision can result in unnecessary costs and stress later on.
