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Old 07.10.2009, 12:07
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Tax liability on a gift

Hi all,

Am currently in the process of buying a house here, and in order to do so, will have to receive a sizeable amount from my parents to put towards it.

Do you know if this lump sum that they transfer to me will be liable to tax (wealth tax i assume will apply)?

Thanks in advance,
Brett
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Old 07.10.2009, 13:08
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Re: Tax liability on a gift

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Hi all,

Am currently in the process of buying a house here, and in order to do so, will have to receive a sizeable amount from my parents to put towards it.

Do you know if this lump sum that they transfer to me will be liable to tax (wealth tax i assume will apply)?

Thanks in advance,
Brett
According to ZH tax law, gifts from parents to progeny are tax free. Do your parents live in ZH? If not, they must discover their tax liablity in their jurisdiction.

You must declare the amount in your tax return and obviously pay wealth tax on it.

You may want to structure this as a loan. Then your interest payments are tax deductible for you.
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Old 07.10.2009, 13:27
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Re: Tax liability on a gift

Thanks for the reply Goldtop. They actually live in Cyprus, so not sure how that affects things?

I had banked (haha) on the wealth tax coming into play. The loan option doesn't really work as the bank would factor that in to any mortgage they gave me, so reducing what they would offer me, so it needs to be done as a gift.
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