Real estate purchase
March 9, 2010 | 15,00 EUR | answered by Matthias Wander
Property value approximately 140,000,--
Purchase price 70,000,--
Including lifelong free right of residence for the sellers
Cold rent approximately 7,200,-- annually
Age of the seller 76 years
Age of the seller 75 years (married couple)
Relationship uncle and aunt of the buyer
Buyer is married and acquiring jointly.
Is it correct that in this constellation real estate transfer tax will be calculated for 140,000,--? Will gift tax also be applicable?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your initial consultation.
In your case, the transfer of the property is partially remunerated. When a property is transferred partially for remuneration, the transaction is divided into a remunerated and a non-remunerated part (here 50:50).
For the remunerated part, real estate transfer tax is due. The real estate transfer tax is based on the value of the consideration (§ 8 para. 1 GrEStG). In your case, this is the purchase price of 70,000 euros.
The non-remunerated part is a gift. Gifts are exempt from real estate transfer tax (§ 3 No. 2 GrEStG).
For the non-remunerated part, the gift tax value is first determined. The proportional value of the right of residence and personal allowances must be deducted from this value. The calculation of the (possible) gift tax must be done separately for each recipient.
Whether gift tax is due cannot be determined based on the information provided.
I hope this gives you an initial overview.
Best regards,
Wander
Tax Advisor
