Transfer of real estate to children
April 27, 2016 | 25,00 EUR | answered by StB Patrick Färber
How is the capital gain handled if I transfer a property to my children during my lifetime that I have not owned for more than 10 years? In such a case, do I also have to pay real estate transfer tax?
Dear questioner,
Your question is not clear (capital gain? real estate transfer tax?), so considering your input, I can only provide general statements without knowing the specific circumstances:
- A gift never triggers real estate transfer tax.
- A sale to direct descendants would be exempt from real estate transfer tax.
- A capital gain in your case would only be assumed if the property was not used for personal purposes (i.e. rented out to third parties) between acquisition and sale for consideration (less than 10 years). If the property was continuously used for personal purposes, the 10-year period is not relevant.
- If you meant that the property is being gifted ("transferred") to the children, then this does not trigger any capital gain, the 10-year period continues for the recipients.
I hope that despite the vague question, clarity could be brought!
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