Big change: This is how the cash that parents give to their children will be taxed

The amount of money up to 150,000 euros that parents give to their children is tax-free, not only to acquire a first home but also to repay the loan installments they have received for the purchase of a first home. On the contrary, with a 10% tax and in fact from the first euro, the parental benefits of money will be charged for the construction of a building on a plot of land acquired by the child with a first home exemption, as well as the acquisition of a property abroad. This is provided by the circular of AADE which clarifies a landscape that has been formed since July 31, 2020 and concerns the donations and parental benefits of money amounts and when these are not taxed. Specifically zero tax burden is provided for the donation of up to 150,000 euros from parents to children have as purpose the purchase of a first home, while in case the amount of the donation is over 150,000 euros then the tax charges will be calculated in stages with rates from 1% to 10%. that: If there are previous parental benefits in which the tax is calculated based on the tax scale, ie a tax-free limit of up to 150,000 euros is applied, the institution of inclusion will apply. Both the previous parental benefits of the same parent to his child will be received, since for them the tax liability has been born from January 1, 2004 as well as the later ones. No charge. However, if this is the first donation for it, there will be zero tax charge until If the parental benefits exceed the price of buying a first home or repaying a loan for a first home, then the total amount provided for the purchase of a first home will be subject to taxation based on the tax scale, not only the exemption from transfer tax, and may also cover the cost of attorney’s fees, notarial fees, transfer fees as well as any resulting transfer tax. If the amount of the financial donation or parental benefit exceeds the price and the aforementioned market expenses, in case of excess it will be subject to independent taxation. In case the parental benefit concerns the construction of a building then the sums of money to be provided by the parents to the children will be subject to independent taxation. Regarding the loan installments, the inclusion in the taxation based on the tax scale (tax-free 150,000 euros) will concern the amounts provided after the entry into force of the regulation, regardless of whether the purchase and exemption of the first residence took place at a earlier time, provided that it covers a price paid (lump sum or in installments) at a later date than 31 July 2020. The same shall apply if the amounts of money provided In the case of a preliminary agreement for the purchase of real estate, the parent or the provision of funds for the preparation of a preliminary purchase agreement will be subject to independent taxation. Independent taxation will also apply in the case of a donation or parental benefit of money for the purchase of children living abroad. Follow the Google News and be the first to know all the news. See all the latest news from Greece and the world, at

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *