Tax Bonuses: Tax-free donations and parental benefits up to 150,000 euros for the purchase of a first home

The tax bill puts an end to the 10% capital tax on the amounts that parents give to their children for the acquisition of a first home .

As explicitly defined, the tax is now calculated with the scale for parental benefits of real estate, so up to 150,000 euros there is no trace of tax.

In particular, the independent taxation of monetary donations and parental benefits recommended by parents to their children for the purchase of a first home is abolished, provided that the conditions are met in the person of the donor children and qualify for the first home exemption of article 1 of law 1078 / 1980 (A ‘238). In particular, the provisions of Article 29 of the Inheritance, Donation and Parental Benefit Tax Code apply to the calculation of the tax on monetary donations and parental benefits, recommended by parents to their children for the purchase of a first home.

A prerequisite for the favorable treatment of such donations and parental benefits is that it appears that the donation or parental benefit is made for the acquisition of the specific property for which they were exempted from first residence.

In this way, the monetary donations from the providers to the children, which are recommended for the purchase of a first home, are tax-free up to the defined amount of the tax scale of the AD category of article 29 of the Code. Therefore, the financial and family independence of the children is facilitated through the provision of funds by the parents to them, in order for them to acquire, exclusively, a first residence, the real contribution of the parents in meeting the needs of the immediate family is recognized economic situation, while at the same time giving impetus to the construction activity.

Based on the scale for parental real estate benefits, for amounts over 150,000 and up to 300,000 euros a 1% tax is imposed, for amounts over 150,000 and up to 600,000 euros a tax rate of 5% is applied while for the part of money that exceeds 600,000 euros is imposed tax at a rate of 10%.

For example, for the parental benefit of 80,000 euros for the purchase of a first home, the tax is zeroed compared to 8,000 euros today. At 200,000 euros the tax is set at 500 euros as the first 150,000 euros are tax-free compared to 20,000 euros today.

source – iefimerida.gr 

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