Hot Issues

Mr. Wu, who has worked in Beijing for many years, is about to retire. He and his wife want to buy a bigger house or villa in the suburbs of Beijing and enjoy their retirement. They originally owned an 80-square-meter two-bedroom apartment and wanted to transfer it to their son Xiao Wu, who stayed in Beijing after graduation two years ago.

But 27-year-old Xiao Wu has just worked for two years and has no Beijing hukou, so he is not qualified to buy a house in Beijing at present. What Mr. Wu wants to know is, can the house be transferred to his son by gift? If so, how much tax should I pay?

Answer:

In the gift of real estate, it does involve the qualification of buying a house, but it cannot be generalized. It depends on the legal relationship between the obligee and the donor-only the immediate family members with a specific relationship can be exempted from the qualification restriction when handling the real estate gift.

Specifically, wheat field real estate professionals pointed out that in the real estate gift, immediate family members include grandparents, grandparents, parents, children, grandchildren, grandchildren, brothers and sisters. Among them, there are only three situations in which the donor does not need the qualification to buy a house: one is between husband and wife, the other is between the owners (that is, the immediate family members with the same signature on the house), and the third is to donate their minor children (China nationality).

In addition to the above three specific situations, whether the owner wants to give the house to other immediate family members or to non-immediate family members (that is, relatives other than immediate family members), the donor must be qualified to buy a house.

As far as Mr. Wu's situation is concerned, even though he and Xiao Wu are father and son, that is, lineal relatives, Xiao Wu is an adult and does not belong to the above three specific situations, so he must wait until Xiao Wu is qualified to buy a house in Beijing (that is, pay social security or individual tax in Beijing for five consecutive years) before going through the gift formalities.

Then, if Mr. Wu wants to give the property to Xiao Wu after his birthday, what taxes and fees should he pay? Wheat field real estate professionals pointed out that from the current regulations, gifts between immediate family members (regardless of whether the gift object needs to be qualified to buy a house) only need to pay 5/10000 deed tax and stamp duty of 3%; Rather than gifts between immediate family members, the taxes and fees are relatively high, including 5% value-added tax, 6% value-added tax, 20% individual tax, 5% land value-added tax, 3% deed tax and five ten thousandths stamp duty.