BUSINESS

Parental gift for buying a home gets much cheaper

PROKOPIS HATZINIKOLAOU

TAGS: Taxation

The new tax bill tabled in Parliament provides for zero tax on cash gifts of up to 150,000 euros made by parents to help their children acquire a home and ascending rates ranging from 1% to 10% for amounts above €150,000.

To date the money gifted by parents to their children has been taxed with a rate of 10% from the first euro.

The Finance Ministry amendment will allow parents to hand over significant amounts of money to their children to buy their home, while also offering a boost to the housing market.

For example, instead of €30,000 for a €300,000 gift, the tax will be €1,500.

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