Gift tax on the purchase of a house
Dear Sir or Madam,
I have the following question regarding gift tax:
Scenario:
My fiancee and I have bought a house together with the following ownership structure: I own 2/3, my fiancee owns 1/3.
House purchase price: 232,000 euros
Purchase costs (property transfer tax, land registry entry, and notary): approx. 20,000 euros
Financed by equity of 200,000 euros, with 100,000 euros coming from my own funds, and another 100,000 euros gifted to me by my mother. My fiancee does not contribute any equity. The purchase costs and part of the purchase price are covered by the existing equity.
The remaining purchase price and necessary renovation measures are covered by a loan of 200,000 euros.
Now that the notary's payment notification has been received, the question has arisen whether my fiancee, due to the above-described situation (1/3 co-ownership of the house, but no contribution of equity from her side (although she participates in repaying the loan)), must pay gift tax (on 1/3 of the purchase price (minus the tax-free allowance of 20,000 euros)).
Should gift tax be due, can it possibly be reduced in the following way?
My fiancee and I agree that, due to her lack of equity, she will take on a larger portion of the loan repayment than would be necessary based on the ownership structure. The gift should therefore be compensated for by a consideration (repayment of the loan), so that no gift tax or reduced gift tax is due. Is the 10-year period to be observed in this case?
We are aware of the principle of chain gifting but do not wish to apply it. A short-term marriage is also not considered.
