Home donations from parents to children will skyrocket to a million following a rise in house prices

The increase of the price of the house 8.6% in the last year has increased the number of owners who choose that give them in life to their children instead of leaving them inheritance. Last year they were 975,000 those who decided to donate a housewhich means a An increase of 45%. in the last ten years, according to data from the National Institute of Statistics (INE).

One of the reasons for this change in trend is “solidarity within the family and between generations“, they point from General Council of Notariesand another that giving has advantages that possession does not. The main one is that children can enjoy the home immediately at a time when it is impossible for most young people to get one by buying or renting.

Another benefit is that by moving the home together, the donor can keep the file. right to lifetime income which allows him to dispose of it until he dies, even if he is no longer listed as the owner.

But not all the advantages, the disadvantages arise from their tax treatment, because in some cases they are required higher tax burden than estates. There are three taxes on housing transfers: Estates and Donations (ISD)the Municipal capital gains (both are paid in estates and contributions) and the Personal Income Tax (IRPF) that only donors face in some cases.

he is ISD is paid by whoever gets the home. Its management is the responsibility of the autonomous communities, so the amount paid varies according to the exemptions and bonuses applicable in each region. One of the regions with the highest profit is Madrid, which has a president, Isabel Diaz Ayusoannounced this month 50% tax bonus For operations between brothers and between brothers and sisters by partnership, so far it has reached 25%. He has also decided to 100% bonus in the case of the contributions from time to time between individuals who less than 1,000 euros.

Regarding the IRPF, paid only on contributions and it must be taxed to the donor if the house is worth more than when he received it. There are two exceptions where it can be exempt: if it is the donor’s usual residence and he is over 65 years of age or if he retains the use of the property and only gives the bare property until the he died

In an opinion Abel Marinlawyer at the law firm Marín and Mateo Abogados, “the most important cost in donations is the tax, since it is treated in personal income tax as capital gain, gives an unpleasant surprise when the year after the donation the donor has to pay high amounts in their income tax return.”

A factor that should be taken into account if you choose to make a donation is what type you choose, whether it can be collected or not, which will alert the lawyer. Juan Jose Martin: “General contributions are like prepayments on the estate. The value of what was given is taken into account when distributing the assets, thus guaranteeing that equity is maintained between the heirs.”

Since it is a joint donation, the receiving heir can enjoy the home in advance without affecting the share of the legitimate property of the rest of the heirs, while unconverted donations “will not be included in the distribution of the estate,” Martin points out.

In these cases, the donations cannot exceed the legitimate portion related to the forced heirs, because It is not possible to give more than would be left in the willand therefore lawyers believe that it is essential to properly calculate what has been given to avoid future conflicts.

In any case, donations fulfill the task of protecting the legitimate inheritance, that is, the portion of the inheritance that is according to the law to the forced heirs. Therefore, “with a joint donation, it is certain that each heir will receiveAt least, what is legally establishedwhile a neutral device allows more room for movement while respecting the legal limits,” explained Juan José Martín.

It emphasizes that if the type of contribution is not specified, it is assumed that it can be collected. That is why it is important that all donations are formal with a public deed and with a notary, the lawyer recommends.