Tax reform: gifts of property within the family become more expensive
NEWS ON THE TAX REFORM: transfers of property within the family are becoming more expensive!
The tax reform increases real estate transfer tax. At present, the assessment basis for gifts within the family is three times the standard assessed value (Einheitswert). From 1 January 2016, however, the generally much higher market value of the property will be used to calculate the tax instead of three times the assessed value.
Conclusion: property transfers within the family will generally become more expensive. It is therefore advisable to consult a specialist lawyer about whether property should be transferred before the tax reform takes effect on 1 January 2016, to benefit from the favourable provisions still in force.
Mag. Patrick Maydell, LL.M., Attorney at Law, will be pleased to answer your enquiries.
Categories: Property law