ᐅ Buying Parents’ House – Which Costs Can Be Avoided?

Hello everyone,

I just typed a lot but couldn’t find the right answer. Over the weekend, we talked about what happens when you buy a house from your parents. I thought you don’t have to pay the property transfer tax in this case? Or was it something else?

Does anyone know anything about this? 🙂

Thanks!

Source: Real Estate Transfer Tax Act
§ 3 General Exemptions from Taxation

The following are exempt from taxation:

1. The acquisition of a property if the value relevant for calculating the tax (§ 8) does not exceed 2,500 Euro (approximately 2,700 USD).
2. Property acquisitions by inheritance and inter vivos gifts of real estate within the meaning of the Inheritance and Gift Tax Act. Gifts with conditions are subject to taxation only in regard to the value of such conditions that are deductible for gift tax purposes.
3. The acquisition of a property belonging to an estate by co-heirs for the purpose of dividing the estate. The surviving spouse or registered partner is treated as a co-heir if they have to share joint property with the heirs of the deceased spouse or partner, or if a property belonging to the estate is transferred to them as a credit settlement under the matrimonial property regime. The spouses or registered partners of the co-heirs are treated equivalently.
4. The acquisition of a property by the spouse or registered partner of the seller.
5. The acquisition of a property by the former spouse of the seller in the context of property division after divorce.
5a. The acquisition of a property by the former registered partner of the seller in the context of property division after dissolution of the registered partnership.
6. The acquisition of a property by persons who are lineal descendants or ancestors of the seller, or whose kinship has been legally terminated by adoption. Stepchildren are equated with descendants. The spouses or registered partners of the persons mentioned in sentences 1 and 2 are treated equivalently.
7. The acquisition of a property belonging to community property by participants in a continuing matrimonial property regime for the purpose of dividing the community property. The spouses or registered partners of these participants are treated equivalently.
8. The reacquisition of a property by the settlor upon termination of a trust relationship. This requires that the tax was paid for the transaction by which the trustee acquired the claim to transfer the property or ownership of the property. The application of § 16 para. 2 remains unaffected.

I probably didn’t have enough coffee in me to think of looking directly at the law... it can be that simple. Thanks!

Sometimes you can’t see the forest for the trees 🙂

I think number 6 should apply to you.