How to put the apartment in my son's name?
One of the questions that clients ask us the most is how to put the apartment in my son's name?
Young people are always the ones who have it most difficult when it comes to accessing a home, be it renting or buying.
Rental prices in Malaga have skyrocketed to such an extent that many young people have been forced to share a flat or even have to move to the periphery, where prices have not yet risen that much.
Wages in general have not risen enough for young people to save and thus be able to access a mortgage.
Most banks usually grant mortgages of 80% of the purchase value, forcing the client to contribute the remaining 20% plus expenses, which are usually another 10% approximately.
In this way, if a young couple wanted to buy a house for €100,000, they would have to contribute €30,000 of their own funds to be able to access the purchase of the house through a mortgage. Undoubtedly something very complicated in these times when young people do not have the capacity to save due to low salaries and high rental prices.
Some are forced to have to request a personal loan apart from the mortgage to be able to face the down payment and are overwhelmed during the first years by having to pay the two installments every month, the mortgage and the of the loan.
For this reason, it is not usually advisable to request a personal loan in addition to the mortgage to access a home unless you have a high enough payroll that the sum of both payments does not exceed 40% of your monthly income.
Put the flat in the name of a son
One of the options that many parents are considering to help their children find housing is to put the apartment in their name. It is true that when the parents die the houses pass to their children's names, but some parents decide to give the house to the child while they are alive so that their child can enjoy the house longer.
The legal act is defined as an intervivos donation, which consists of donating something between two people who are alive. As it is a housing donation, all the appropriate steps must be taken so that it is done correctly and thus avoid any possible sanction.
How do you put a flat in the name of a child?
In the first place, the necessary documentation must be collected: deed of origin, energy certificate, certificate of being up to date in the community and the IBI, updated simple note and ID of the parties involved.
Once we have all the documentation, we must go to a notary to sign the deed of donation before a notary. In this way, the private agreement between donee and donor becomes public.
Both the homeowners (donors) and those who are going to receive the property (donees) must sign the deed.
Once you have the deed that proves who is the new owner of the house, the person who receives the donation must present the model 651 of the Junta de Andalucía and pay the corresponding gift or inheritance tax, while the owner must pay the capital gains municipal to the Town Hall where the house is located.
After paying all the corresponding taxes, you will only have to provide all the documentation in the property registry to change the ownership of the home.
The registry takes between 15 and 30 days to register a donation and will also charge for services rendered.
When you have carried out these procedures, you will have finished and you will have put the apartment in your son's name. You will only have to change the ownership of the electricity and water supplies as well as the IBI and the community of owners.
How much does it cost to put the apartment in the name of a child?
The main concern when donating a flat to a child is the amount of expenses generated in the operation. Although the son obviously saves the main expense, the price of the house, there are many expenses that both the one she donates and the one she receives have to pay when a father donates the house to his son.
Below we detail the costs of donating a flat to a child
Notary:
You must pay your fees for the preparation and drafting of the donation deed
Inheritance tax and donations:
Anyone who receives any type of donation in Andalusia has to pay inheritance tax and pay a percentage for the money or good obtained. The amount to be paid depends on the amount of money or the fiscal value of the good obtained. The higher the capital or the value of the property, the higher the percentage to be paid.
There are rebates on the gift tax when it comes to an intervivos donation from parents to children if a series of requirements are met both by the person receiving the donation and the amount donated.
In Andalusia, children under or over 35 years of age who receive a home from their parents and are going to use it as their habitual residence will have a 95% reduction in donation tax. In exchange, they must keep the home as their habitual residence for at least 3 years and may not move to another or sell or rent it.
In case of not complying with this last requirement, the Junta de Andalucía will claim the difference that the taxpayer initially saved plus a penalty for non-compliance.
In this way, what is undoubtedly the main expense in a donation is substantially cheaper.
Municipal capital gain:
It is the other highest expense in a donation, and unlike the rest of the expenses, it is the only one that the father who donates the house instead of the son has to pay.
If you want to know what the municipal surplus value is. how it is calculated and how it influences the last sentence of the constitutional court read our entry in the blog capital gains municipal.
Manage to put a flat in the name of a child
If you want to put your apartment in the name of your child and you want to hire the services of a professional who will take care of everything for you and save you time and inconvenience, you just have to contact us and our manager will attend you personally to advise you and give you a personalized quote.
Contact Valoracasa for your Advice al 695033558 o al Cruzhumilladero@valoracasa.es
Or come visit us at any of our workshops
Juan Rosado
CEO
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