Selling a property within the family

These benefits are associated with selling a property within the family in Hamburg Schnelsen

When a property in Hamburg Schnelsen is set to be sold within the family, the owners are usually individuals of advanced age who now wish to sell the long-lived-in house or apartment to their children or grandchildren. Often, large single-family homes, duplexes, or multi-story row houses are not easily manageable for seniors, prompting a move to a smaller, more user-friendly property. The proceeds from the sale can, for example, finance the new apartment or, if necessary, long-term assisted living. Even if the current owners are still largely able to participate in social life without restrictions, the proceeds from the sale of the house or apartment in Hamburg Schnelsen can be put to good use—such as fulfilling a long-held dream or supporting a charitable cause.

In any case, the capital originally invested is made accessible again by selling to direct descendants, while ensuring that the beloved property remains in the family. Additionally, selling within the family during the lifetime of older owners can prevent potential inheritance disputes through clear and communicative arrangements—a priority for many sellers, as our real estate agents have found. Moreover, selling to one's children or grandchildren can result in several tax benefits, as the next section reveals.

The tax specifics of selling property in Hamburg Schnelsen to your descendants

Generally, selling a property within your family proceeds similarly to selling to an external buyer: notarial contract signing, clarification of payment modalities, and the possibility to agree on usufruct rights or the like do not differ from regular sales. However, significant differences arise on a tax level, as our real estate agents in Hamburg Schnelsen explain. For sales to potentially inheritable individuals, no gift or inheritance tax is due—even within the ten-year rule, since it's a sale, not an inheritance or gift. Further information is available in our extensive inheritance guide, which we are happy to provide.

In terms of real estate transfer tax, interesting options arise: when a single-family house, duplex, row house, or apartment in Hamburg Schnelsen is sold to a direct relative, such as children, grandchildren, or even parents, no real estate transfer tax is charged. Even relatives from your collateral line, like siblings, can benefit from a reduction in real estate transfer tax if a usufruct right is agreed upon in the sale.

Always ensure that a fair sale price, roughly corresponding to the current market value of the property, is set. Otherwise, authorities might suspect unfair intentions to avoid tax obligations.

To determine the current market value of your house or apartment in Hamburg Schnelsen, Engel & Völkers Hamburg offers a free and non-binding analysis of your property. Even though no external buyer needs to be found in a family sale, we're happy to support you with our expertise, assisting you from gathering all necessary documents to the notary appointment. We are also available to assist you in purchasing a follow-up property in Hamburg Schnelsen or surrounding districts.