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

The question of how much to give as 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 you 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 answer 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 simply remember from year to year. If you give more than the basic allowance, gift tax must be paid on the excess amount.

Gifts to friends and others outside close family are generally regarded as taxable income for the recipient. In practice, however, customary occasional gifts, that is, gifts of reasonable value for occasions such as birthdays, weddings or Christmas, are usually not taxed. Christmas gifts from employers to staff 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 check the current figures with the Danish Tax Agency (skat.dk) before you plan a larger cash gift.

How much do 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 usually 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 custom? If there's 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 becoming expensive for each individual.

How much do 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. This 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 do you give as a wedding gift?

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

If the couple has a wishlist, it's an easy way to get it right. If there isn't one, you could consider a joint gift with other guests, so that together you can give something a little bigger than you'd be able to on your own.

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 matches the recipient's taste usually means more than the amount itself.

Gift ideas for every price range

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

• Gifts 1-200 DKK: great for a colleague, a hostess gift or a little token of appreciation.
• Gifts 200-400 DKK: a classic birthday gift for a friend or family member.
• Gifts 400-600 DKK: suits a closer friend well or a gift that should carry a bit more weight.
• Gifts 600-800 DKK: ideal as a wedding gift or a gift for close family.
• Gifts 800-1000 DKK: a bigger gift for a special occasion or a wedding.
• Gifts 1000-1500 DKK: 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 100 DKK, 175 DKK, 250 DKK, 400 DKK, 500 DKK, 600 DKK, 1000 DKK and 1200 DKK, so you can match the amount you had in mind without guessing at 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 to 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

• Wedding gifts: unique wedding gifts they'll remember
• Hostess gift: the perfect thank you gift
• Gift for mum: the best ideas
• Gift for dad: ideas he didn't know he wanted
• What should I ask for as a birthday gift?
• Do you bring a gift to a housewarming party?