Many parents wish to help their children find the right home wherein they will be able to reside. In fact, many parents ask what taxes are due on deeds of donation whereby they will donate an immoveable property to their children.
Property Transfer Tax
The Donors, in this case the parents, will pay no property transfer tax since donations to descendants in direct line are exempt from payment of taxes.
Stamp Duty
The Donee, in this particular scenario, will be exempt from paying stamp duty on the first €250,000 whereas the remaining balance will be taxable at 3.5%. Indeed, this tax relief will only apply in cases where the donation in question is the first donation from the parents and provided also that the donee does not own any other immoveable property in respect of which duty relief was availed of.
Regards,
Dr. Clara Farrugia Grixti
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