Index
Donating a property requires a notarial deed, with costs ranging from 1,500 to 5,000 euros depending on the value and complexity.
If you intend to give away the property free of charge, of a house you can resort to donating the property.
The donation is an alternative tool to the traditional sale, very useful for the management of real estate assets and real estate. In this article we will see what the costs and taxes are for donating a property, and everything you need to know to get started.
What is a donation? The donation of a property and how it works
Article 769 of the Civil Code recognizes the donation as a contract between two parties: the donor, i.e. the person who transfers the property, and the donee, the person who receives it. Its fundamental assumptions are the spirit of generosity and the enrichment of the donee, who is the beneficiary of the donation.
There are two types of real estate donation:
- direct, that is, a public deed in front of a notary and two witnesses to transfer ownership of a property from one person to another. This is the case, for example, of the donation of a property to a son or daughter;
- indirect, when the transfer of ownership occurs at the time of the purchase of a house. You can decide, for example, to purchase an apartment and then proceed with the donation of the property to your children by registering the deed of ownership in their name.
The donation of real estate is widely used by families to distribute real estate assets and reduce expenses for second homes, or in other situations such as a jointly owned home for a couple.
Even if it is always free of charge, the taxes for the gift of a property still need to be considered, as they vary depending on certain factors. We'll look at them better in the next paragraph.
What taxes are paid with the donation of a property?
The donation system involves different costs than those of the sale of a house. What makes the difference is the real estate donation tax, a charge foreseen only for this institution that varies based on the kinship relationship between the donor and the donee. We can summarize the main cases as follows:
- for donations between people not related by kinship the rate is equal to 8% of the value of the property;
- for donations between relatives in a direct line - therefore husband and wife, or parents and children - the rate is 4% only on the value exceeding one million euros, taking into account the tax exemptions;
- between brothers and sisters, on the other hand, 6% of the value exceeding 100,000 euros must be considered;
- if the donation is between other relatives the rate is fixed at 6% on the entire value of the property;
- the last case concerns the donation in favor of a person with a serious form of disability, with a rate of 8% on the part that exceeds one and a half million euros.
In addition to this tax, there are other costs and taxes for the donation of the property, including mortgage and land registry taxes. Let's see what they are.
Cost of donating a property
As with any contract that regulates the transfer of ownership of a property, for the donation of real estate the costs also include the mortgage tax of 2% of the cadastral value of the property and the cadastral tax of 1%. If the donee receives the property as a first home, the two taxes are fixed at 200 euros.
Then there is the stamp duty of 230 euros and the registration tax of 200 euros.
The last expense item is the notary's fee. The professional's fee varies based on factors such as the category and the cadastral income of the property and generally increases with the value of the house.
Some risks of a real estate donation
We cannot help but remind you that there are also some risks for the transfer of real estate, especially for the donee:
- the donor can request the revocation of the donation due to ingratitude, very serious acts committed by the donee (such as murder or actions against the donor's assets), or even due to the emergence of children or other descendants;
- within 10 years of the donor's death, the heirs can request the return of the donated property to obtain the legitimate share of the succession;
- within 20 years of the transcription of the donation, the donor's heirs can request the balance of the share corresponding to the donation, also to any new owner who takes over from the donee.
In practice, the donee risks never being the full owner of the house received as a gift. The main advantages therefore arise from donating the property to the children, with truly low costs and the security of the continuity of the inheritance line.
Although it is a more expensive alternative to donating real estate, the sale allows you to assume full ownership without any ifs or buts. of your home.
To buy a house or expand your real estate assets for possible gifts to children, the Casavo's classifieds platform is your ideal starting point. Come and take a look at the new real estate proposals we have selected for you!
