Hire purchase, inheritance, holiday apartment
The following circumstances:
The purchase of a house in Germany with land for a price of 500,000 euros is planned. The current owner is to remain living in his apartment until his death. A compensation amount of 130,000 euros is set for this lifetime right of residence. This results in a remaining purchase price of 370,000 euros. After deducting a 10% contribution in cash, a residual amount to be financed remains, which is to be financed through a lease-purchase agreement with monthly payments, which will also be transferred to the future heir.
Specialties include:
1. Approximately 2/3 of the living space is currently rented out as holiday apartments.
2. The house is encumbered with a mortgage of 200,000 euros.
3. The borrower remains the current owner, who also remains in the land register. At the same time, the lease-purchase agreement is secured for the buyer as a transfer in the land register. A lifelong right of residence for the current owner is also noted in the land register or notarized.
4. Special payments are possible at any time.
What tax issues (with consequences) need to be considered for the buyer (working, living in Switzerland), seller (retired, 70 years old), and future heir (35 years old)?
Is this model tax-applicable?
