Good news has finally arrived for those interested in parent-child donations: you will soon be able to say goodbye to the expenses.
Help your child in purchasing a house, in paying a mortgage instalment, or in fulfilling an obligation for a loan instalment. from now on it will weigh less on the family’s pockets.
Based on what the law has just established, through the latest ruling of the Supreme Court, giving a sum of money to a family member will cost much less than in the past.
Let’s discover the great news that will save you a lot on all future parent-child donations.
Parent-child donations, the great news that will save you a lot
Parent-child donations can be of two types, and are called directif I’m accompanied and sanctioned by a public and formal deed, received by a notary in the presence of two witnesses, through which the donor transfers ownership of an asset by transferring it to the donee free of charge. On the other hand, donations having the same effect as direct ones, such as the remission of a debt, or a contract in favor of a third party by which an asset is donated, are classified as indirect donations. The difference, however, lies in the fact that in the latter the public document and the presence of two witnesses are missing.
Based on what was established in 2015 by the Revenue Agency, through circular number 30 and of 11 August, donations and parent-children were exempt from taxes in the case of indirect donation. Subsequently, however, the Revenue Agency itself returned to the topic, e.g established that the tax applies to all donations, even informal ones. Fortunately, the Supreme Court, with sentence number 7442 of 2024, introduced some important innovations, which represent excellent news for those interested in making parent-child donations. Let’s find out what changes.
What changes and what did the latest ruling of the Supreme Court establish
The aforementioned ruling of the Supreme Court has changed the rules on parent-child donations, and therefore, if until now the law established that even money delivered by hand or by bank check was subject to the payment of taxes, from now on all indirect donations will become tax-free.
This concretely means for a parent to be able to help their child much more easily, for example with the purchase of an asset such as a car, a house or making a donation via bank transfer. From now on, only donations that exceed one million euros, or that are registered and declared by the taxpayer in a tax assessment, will be taxable.
