Gifting crypto? Here's how to optimize your taxes

The value of a crypto portfolio can increase significantly. Reason enough to start delving into gift tax now. This can save you a considerable sum in gift and inheritance tax. Moreover, there are many possibilities to ensure that your money ends up in the right place and you retain some control. After reading this article, you will know how to make the most out of your taxes. 

How does gift tax work?

Gift tax is a tax levied in the Netherlands on the value of gifts. When a gift is made, the recipient pays gift tax on it. The amount of tax depends on two factors:

1. The relationship between the giver and the recipient
2. The value of the gift

The gift tax rates for 2025 are as follows:

There are various exemptions, which mean that no gift tax has to be paid up to a certain amount. These exemptions differ per relationship and situation.

If the gifted amount remains below the exemption, no gift tax needs to be determined at all. If you gift more, gift tax only needs to be paid on the amount above the exemption. 

The exemptions for gift tax are as follows:

• General exemption: €2,690 (2025).  
• Gift from parents to children: €6,713 (2025)
• One-time increased exemption for children 18-40 years:
  • €31,813 for general purposes
  • €66,268 for an expensive study

Considerations when gifting crypto

The same rules apply to cryptocurrencies as to other forms of assets. However, there are some points of attention that play a larger role when gifting crypto compared to other possessions. For a gift, the value at the time of gifting is used.

Because fluctuations in crypto can be much larger, it may be important to gift at a favorable moment. The lower the value of the crypto at transfer, the less tax you will pay. If the value increases afterwards, you won't pay additional gift tax on the increase in value.

It's important to determine and document the correct value when gifting crypto. This can be done, for example, by using the transaction on the blockchain as proof.

Correctly administering crypto gifts

For gift tax purposes, it's essential to be able to demonstrate that the gift has actually taken place and that the crypto has changed ownership. This requires that the cryptocurrency actually disappears from the giver's assets and ends up in the recipient's assets. The question is: how do you do this with crypto? 

To achieve this, it's recommended to open a wallet in the name of the recipient and make the transaction verifiable via the blockchain. Recording the transaction moment and block number can help with this, but it's also important that the recipient can be identified as the new owner of the crypto. At Amdax, we have a child account which, of course, is in the child's name, making it unequivocally clear whose assets they are. Clear administration and documentation of the gift are crucial to be able to answer any questions from the tax authorities and to prevent the gift from being considered invalid.

Consequences of gifting for income tax

Gifting also has consequences for income tax. When you gift assets, the gifted amount is deducted from the giver's assets. This leads to less income tax in box 3.

An important difference occurs when the recipient is a minor child. As long as the child is a minor, the gifted assets are included in the parents' income tax return. This means that in this case, the gift has no effect on the parents' box 3 levy until the child turns 18.

A special construction that can also be chosen is gifting on paper. The advantage of gifting on paper is that you can transfer assets to the next generation without immediately transferring money. This can lead to savings on inheritance tax and possibly also income tax in box 3. With a gift on paper, a debt is created for the giver. This debt can be deducted in the income tax return. The debt reduces the giver's assets in box 3. A negative fictitious return applies to the debt (provisionally -2.62% in 2025). With gifting on paper, interest obligations do arise. The giver must pay 6% interest annually on the gifted amount. This interest payment further reduces the giver's assets, and is positive for the recipient's assets.

Gifting with conditions: interesting possibilities

You don't need a gift agreement to gift to others. If you want to set your own conditions for the gift, it is interesting to draw one up. A gift deed provides legal certainty and can help with any discussions afterwards. You can draw up such an agreement yourself. This is called a private deed. You don't need a notary for this.

Marcel Koeslag from BDO mentions a number of situations in which a gift agreement could be valuable:

1. Exclusion clause: This provision ensures that the gifted assets remain private property of the recipient, regardless of whether the child marries in the future.
2. Revocability: You can stipulate that the gift can be undone under certain circumstances.
3. Spending purposes: You can specify what the gifted amount may or may not be used for, for example for a house but not for a vacation.
4. Administration provision: With this, you can arrange that the recipient may only independently dispose of the gifted assets from a certain age, for example 23 years.
5. Obligation to contribute: This stipulates that the gift must be brought into the estate upon the death of the giver, which can help in treating heirs equally.

Gifting: an interesting strategy for asset transfer

Gifting is a very interesting strategy for asset transfer for several reasons:

Utilization of exemptions

By cleverly using the annual gift exemptions, considerable assets can be transferred tax-free over time. By using the exemption of €6,700 per child annually as a parent, you can save a significant amount. Over a period of 10 years, this can add up nicely. After all, over 10 years you have gifted €67,000 tax-free, on which you would otherwise have had to pay 10% tax. By transferring assets in a spread manner, you also prevent having to pay gift tax on the increase in value, which is particularly relevant for crypto.

Preventing inheritance tax

Gifting with a warm hand is much more advantageous than with a cold hand. Gifting during life can significantly reduce future inheritance tax. Assets that have already been gifted are no longer part of the estate and therefore no inheritance tax needs to be paid on them.

By gifting assets during life instead of at death, you also prevent having to pay inheritance tax on the increase in value. This is particularly relevant for crypto.

Spread asset transfer

By gifting gradually instead of leaving everything at once, not only is the impact of gift tax minimized, but recipients can also get a little used to the assets. That's different from receiving the assets all at once and only then thinking about what to do with the received assets. In addition, the recipient can benefit from the assets earlier in life. By gifting, you can also have more control over the spending by setting conditions.

Flexibility remains possible

Gifting doesn't mean you completely lose control over your gifted assets. Conditions can be set on the spending, gifting on paper can be chosen, and revocable gifts are possible under certain conditions.

By cleverly using these advantages, gifting can be a very effective way to transfer assets in a tax-favorable manner and minimize inheritance tax.