Gift transfer is a common method of real estate transfer between close relatives. Today, Xingfuli House Buying Knowledge will summarize for you what taxes need to be paid on gift transfers between close relatives.
Business tax: Gifts of real estate between close relatives and people with custody and support relationships are exempt from business tax (spouse, parents, children, grandparents, grandparents, grandchildren, grandchildren, brothers and sisters). Other gifts between relatives still need to pay business tax according to regulations. Generally, houses over five years old can be exempted from tax, and the business tax rate for houses under five years old is 5%.
Deed tax : The tax that must be paid, the general tax rate is 3%-5%.
Stamp tax: A tax that must be paid. The general tax rate is 0.05%.
Personal income tax : Gifts of real estate between close relatives and people with custody and support relationships are exempt from personal income tax (spouse, parents, children, grandparents, maternal grandparents, grandchildren, maternal grandchildren, brothers and sisters); gifts between other relatives still need to pay personal income tax in accordance with the law.
