What’s the most cost-effective way to transfer a house?
Recently, house transfer has become a hot topic, and many home buyers and sellers are concerned about how to complete the transfer in the most cost-effective way. This article will provide you with a detailed analysis of policies, fees, procedures, etc. to help you save costs.
1. Several methods and applicable scenarios for house transfer
| Transfer method | Applicable scenarios | Cost comparison |
|---|---|---|
| Transfer of ownership | Ordinary commercial housing transactions | Deed tax 1%-3%, personal tax 1% (only exempt if you are over 5 years old) |
| Gift transfer | Transfer between immediate family members | Deed tax 3%, notary fee 0.2%-1% |
| inheritance transfer | Transfer of ownership after the death of the property owner | Notary fee 0.2%-1% (exempt from individual tax and deed tax) |
2. Latest policy interpretation (October 2023)
1.Deed tax benefits extended: Many places continue to implement the preferential policy of 1% deed tax for first homes below 90 square meters.
2.Only tax-free for those over five years old: If an individual transfers it for self-use for more than 5 years and it is the family's only home, personal income tax is exempted.
3.Gift purchase limit policy: Some cities include purchase restrictions on donated properties, so you need to understand local policies in advance.
3. Comparison of cost details
| Expense items | Transfer of ownership | Gift transfer | inheritance transfer |
|---|---|---|---|
| Deed tax | 1%-3% | 3% | exempt from tax |
| personal income tax | 1% (only exempt if you spend more than five years) | exempt from tax | exempt from tax |
| value added tax | 5.6% (exempt after 2 years) | exempt from tax | exempt from tax |
| Notary fees | None | 0.2%-1% | 0.2%-1% |
4. Recommendation of the most cost-effective transfer plan
1.The only ordinary residence in Manwu: If you choose sale and transfer, you can enjoy full exemption from personal income tax and value-added tax, and only need to pay 1%-3% deed tax.
2.Transfer between immediate family members: If the recipient is not qualified to buy a house, he can donate it first and then buy or sell it; if he is qualified to buy a house, it will be more cost-effective to buy and sell the house after reaching the age of five.
3.Inherited property and resold it: If you sell it immediately after inheritance, you need to pay 20% personal tax (charged on the difference); if you hold it for 5 years, you can sell it tax-free.
5. Operation process guide
| steps | Transfer of ownership | Gift transfer |
|---|---|---|
| first step | Sign a sales contract | Handle donation notarization |
| Step 2 | Online visa filing | Submit a gift application |
| Step 3 | pay taxes | pay taxes |
| Step 4 | Handle property rights transfer | Handle property rights transfer |
6. Precautions
1.Regional differences: There are differences in policies among cities. For example, Beijing requires that donated real estate must comply with purchase restriction policies.
2.future cost of sale: Property acquired through gift or inheritance may incur higher taxes when sold in the future.
3.legal risks: Gifts may be subject to the risk of revocation, so it is recommended to sign a written agreement.
7. Expert advice
1. Plan ahead: Choose the best transfer time based on your family’s property holdings.
2. Professional consultation: It is recommended to entrust a professional real estate lawyer or tax accountant to design the plan.
3. Long-term considerations: Not only the current transfer costs must be considered, but also the tax impact of future property disposals.
From the above analysis, we can see that the most cost-effective way to transfer a house needs to be chosen based on specific circumstances. It is recommended that home buyers fully understand the policies, make cost estimates, and choose the transfer plan that best suits their circumstances before handling the transfer.
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