Legal and Finance Finance Greek Civil Law - Parent's Donation
Greek Civil Law - Parent's Donation
The Parent's donation (parent's gift), is a totally different legal subject to the ordinary donation which is happening between friends, partners, uncles, any other people but no, parents.
This legal practice was invented twenty years (20) ago, to enable the parents to donate their fortune to their children while they are still alive, to avoid paying enormous future inheritance taxes.
The parent's donation tax, is always much less than the inheritance tax.
To donate to their children their assets, parents must attend the notary's office and state their wishes. They can make their child total owner of their fortune, or, they can keep part of the ownership, for until the time they die.
Donating taxes can be paid in one instalment and you will get 5% discount, or, you can pay it in several instalments. Each instalment can not be less than 300 euros.
This specific procedure can be undertaken completely by your lawyer, by giving him/her a Power of Attorney.
The Gift tax between parents & their children:
When parents donate their property to their children, then according to the today's tax scales, the Gift tax is the below:
a) For a property which is worth 150.000 euros, the donation is tax free.
b) For a property which is worth 150,000-300,000 euros, the donation tax is 1%.
c) For a property which is worth 300.000 euros and more, the donation tax is 5%.
By donating now your assets to your children, you can make their life easier and still be in charge of your fortune.