Parental gift for buying a home gets much cheaper

Parental gift for buying a home gets much cheaper

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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