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The valuation principles for gifts and inheritances are nearly identical, as both are subject to the same Valuation Act and serve the same purpose – the fair taxation of an uncompensated transfer of assets.
The relevant reference date for a gift is the day the transfer is executed, usually the notarial handover date or the land registry entry.
As with inheritance, a lower fair market value can also be demonstrated here via an appraisal report under § 198 BewG, if the flat-rate determined value exceeds the actual circumstances.
Note the independent obligation to report: gifts must be reported to the responsible tax office pursuant to § 30 ErbStG within three months of becoming aware of them, even if no request has yet been made – the deadline runs independently of the subsequent valuation process.
Unlike in the case of inheritance, the donor may also contractually agree to bear the gift tax themselves; for tax purposes, this is treated as an additional gift and increases the assessment basis accordingly.