How much should you spend on a gift? Rules and advice

The question of how much to spend on a gift actually covers two things. One is about the tax rules for cash gifts, in other words what you can give without it costing anything in tax. The other is about good etiquette: what's appropriate to spend on a gift for a friend, a wedding guest or a grandchild.

Here you'll find the answers to both, and at the end, some concrete ideas across different price ranges if you need inspiration for the gift itself.

How much money can you give as a gift?

Cash gifts to close family, for example children, grandchildren, parents and children-in-law, can be given tax-free up to an annual basic allowance. The amount is set by the Danish Tax Agency and adjusted every year, so it's not a fixed figure you can remember from year to year. If you give more than the basic allowance, tax must be paid on the excess amount.

Gifts to friends and others outside the close family are generally considered taxable income for the recipient. In practice, however, customary occasional gifts, meaning gifts of reasonable value for, say, a birthday, wedding or Christmas, are usually not taxed. Company Christmas gifts to employees can also be tax-free up to a threshold, which is likewise set annually.

Because the amounts change from year to year, it's always a good idea to look up the current figures at the Danish Tax Agency (skat.dk), before you plan a larger cash gift.

How much should you give to friends and colleagues?

There's no official rule here, just common sense. Consider a few things when working out the amount:

• How close are you? A close friend typically calls for a different gift than a colleague you've only just met.
• What's the occasion? A milestone birthday or a wedding often carries more weight than an ordinary birthday.
• What's your usual practice? If you have an unwritten tradition for the level within your friend group or workplace, it's natural to follow it.
• Are several of you chipping in? A joint gift makes it possible to give something bigger, without it being expensive for each individual.

How much should you give to family and children?

For close family, including children and grandchildren, cash gifts can, as mentioned, be given tax-free up to the basic allowance set by the Danish Tax Agency each year. That makes cash gifts practical for birthdays, confirmations and similar occasions, as long as the amount stays under the threshold.

For children in the family, it's common to combine a cash gift with a physical gift, or choose a gift in a price range that matches the occasion and the child's age.

How much should you give as a wedding gift?

For weddings, there's a commonly mentioned guideline: the gift should at least match the cost of your own place at the reception. It's not a rule, but a practical rule of thumb to start from.

If the couple has a wish list, it's an easy way to get it right. If there isn't one, you could consider a joint gift with other guests, so together you can give something a bit bigger than you could manage alone.

How to find the right amount

Whether it's a cash gift or a physical gift, you can use the same questions to find an amount that feels right:

• How close is the relationship, and how often do you see each other?
• How big is the occasion: an ordinary birthday or a milestone birthday?
• What can you actually afford right now, without it becoming a strain?
• What do you usually receive yourself from the same person or group?

A thoughtful gift that suits the recipient's taste usually means more than the amount itself.

Gift ideas for every budget

Once you've found an amount you're comfortable with, you can go straight to the price range that suits:

• Gifts DKK 1-200: great for a colleague, a hostess gift or a small token.
• Gifts DKK 200-400: a classic birthday present for a friend or a family member.
• Gifts DKK 400-600: suits a closer friend well, or a gift that should carry a bit more weight.
• Gifts DKK 600-800: ideal as a wedding gift or a present for close family.
• Gifts DKK 800-1000: a bigger gift for a special occasion or a wedding.
• Gifts DKK 1000-1500: for the truly special occasions, or as a joint gift with several people chipping in.

All items are handpicked by Dinna, so you can browse by budget without compromising on style.

Not sure what they want? Give a gift card

If you're not sure what the recipient actually wants, a gift card from Dims Studio is a safe choice. It's available in amounts of DKK 100, DKK 175, DKK 250, DKK 400, DKK 500, DKK 600, DKK 1000 and DKK 1200, so you can match the amount you had in mind without having to guess their taste.

Summary

There's no fixed rule for how much a gift should cost, but for monetary gifts there are tax rules you should know, especially the tax-free allowance for close family and the rules on customary occasional gifts for friends. Use the relationship, the occasion and your own finances as guidelines, then find a gift in the price range that suits, or choose a gift card if you're unsure.

Read also

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• Hostess gift: the perfect thank-you gift
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• What should I wish for as a birthday gift?
• Do you bring a gift to a topping-out party?
• Gift for couples: gifts they can enjoy together
• Christening gift: ideas and advice for the perfect gift
• What do you give as a graduation gift? Ideas at every price point