Gift Tax Guide for US Expats
Annual exclusion limits, Form 709 filing requirements, and special rules for gifts to non-citizen spouses and from foreign persons
2025 Gift Limits
Gift Calculator
Donor Information
If you receive gifts from foreign individuals or estates:
- Form 3520 required if you receive >$100,000 from a foreign individual/estate in a year
- Form 3520 required if you receive >$18,567 (2025) from a foreign corporation or partnership
- Gifts received are NOT income — but failure to report can result in 35% penalty
- Foreign gifts do NOT trigger US gift tax on the donor
Gift Tax Analysis
Key Scenarios
💍 Gifts to Non-Citizen Spouse
The unlimited marital deduction does NOT apply to non-US-citizen spouses. Instead, you have a higher annual exclusion ($190,000 in 2025). To transfer larger amounts tax-free, consider setting up a QDOT (Qualified Domestic Trust).
🎓 Education & Medical Payments
Direct tuition payments to educational institutions and direct medical payments to healthcare providers are EXCLUDED from gift tax — even amounts above the annual exclusion. Must be paid directly to the institution.
🏠 Giving Property Abroad
Gifts of foreign property (real estate, bank accounts abroad) are subject to US gift tax if made by a US person. The fair market value at date of gift determines the amount. FX conversion required.
✂️ Gift Splitting
Married couples can elect to split gifts — each spouse is treated as having made half the gift. This effectively doubles the annual exclusion to $38,000 per recipient. Requires both spouses to consent on Form 709. Cannot split if either spouse is non-US-citizen.
📦 Receiving Gifts from Family Abroad
Many US expats receive financial support from non-US family members. If total exceeds $100,000/year from foreign individuals, you must file Form 3520. No tax owed — but failure to report = 35% penalty of the amount.