Many families are faced with the problem of property transfer, and parents who want to leave their homes to their children are being bypassed by the three forms of “gift, sale, inheritance”. Many of the attacks on the internet are either to say that money is being saved now, not to mention the following risks, or that the process is inexplicable and ordinary people don't know what to do. In fact, the 2025 policy makes it clear that, as long as the house is “the only home for five years and the only home for the parents”, it is the real “saving + saving + no pit” that will be completed in three days, with tens of thousands less now than the gift, and a tax on the future sale of the children. Today, using a process-by-policy basis, it is clear and clear, without expertise, to do the same。
Let's start with an intuitive check. Why buy and sell gifts? We take the example of a common house in the country: 90 square metres, a market price of 2 million, five years and the only house for parents, with children as the first home。
See first-hand gifts and transfers: according to article 3 of the law of the people's republic of china on taxes, 3 per cent of the tax is paid for the gifted properties, i. E. 2 million x 3 per cent = 60,000; plus 0. 05 per cent of the stamp duty of each party, a total of 2,000 yuan is spent. More crucial is the follow-up pit: if the child wants to sell a house in the future, if the house is less than five years old, or if it is not the only house for the child, he or she will have to pay 20 per cent of his or her personal income tax on the “transfer proceeds”. For example, the increase to 3 million houses requires the payment of a tax (3 million-2 million) x 20 per cent = 200,000, which is no small amount。
See also the purchase and sale of households: also under the tax code, the initial flat is taxed at 1 per cent for less than 90 square metres, 2 million x 1 per cent = 20,000; the stamp duty is still $2,000, for a total of $22,000. That's 40,000 less than the gift! Moreover, the following children are entitled to a tax exemption when they have to sell their house “for five years and as long as they are the only one”, as is the case with ordinary second-hand house transactions, without additional restrictions. That's why buying and selling a household is “the present and the future”, and the gift is just a “discussional matter”, and it's a big mine。
Some might wonder, "do you really have to pay your parents to buy and sell a house? How can a family be seen like this?" the purchase and sale of a household is only a form of registration, and parents and children may enter into a “zero-price purchase and sale contract” in which the real situation of “free transfer between relatives” is indicated, and the price of the house is within the market's reasonable range, and the real estate register will accept it and will not require funds to flow. It is important to note, however, that 2 million houses cannot be written at the price of 100,000, otherwise tax authorities will be assessed at market value and will not be paid。
This is followed by a three-day measurement process at the core, each of which is marked with attention and avoids unfairness:
Day one: materials are ready, once ready。
The materials that need to be carried are simple, and can be prepared in advance: originals and copies of parents' and children's identity cards, household records (if not on a household register, a birth certificate or an exclusive child's certificate, proof of kinship), original property certificates and copies thereof; children's application for a “first suite/second suite certificate” in advance of their local government (e. G. “with application” for a “time-in-time” room) or a copy thereof; contracts for the purchase and sale of houses can be filled in a template at the site of the real estate registration centre, and can be downloaded in advance of the local building office network, after which parents and children's signatures are confirmed (it is necessary to indicate “free transfer between relatives”); if the house has a mortgage, they must first have an understanding of the deposit and obtain a release certificate in order to travel to the home, this step must be taken in advance and not be taken in a three-day process。
Day two: tax + application for transfer, half a day。
Take all the materials to the real estate register and go first to the payment window. The staff check the housing information (whether it is five years old or not and whether it is the only one) and the child's proof of eligibility for the purchase of the house, and then calculate the tax fee in accordance with the policy. For example, 1 per cent of the tax plus 0. 05 per cent of the stamp duty (both parties) will be paid a certificate of tax clearance, which is a key element of the transfer and must be collected。
Once the tax has been paid, the submission to the window is processed and the parents and children are required to sign (in the event that one of the parties fails to do so, a notary of commission, a power of attorney and a trustee's id). The staff will check the authenticity and completeness of the material and will issue a receivable letter, which indicates the time of receipt of the new property certificate, usually the next day。
Day three: new property certificate, transfer completed。
At the time of the return order, the original identity card and the receipt of the return order were completed, and the new property certificate was obtained at the registration window at the real estate registry, where the person entitled to it was the child's name. If there is no time to collect it, the application may also be submitted with the option of “mail delivery”, at a cost of 10-20 yuan, and the new certificate will be sent directly to the home, much less。
Here's to remind us of some of the lessons learned:
The “five-year-old” calculation of the house is based on the date of registration on the property certificate or on the date of the tax clearance certificate, whichever is earlier. For example, the tax was paid in march 2020, the property certificate was issued in may 2020, and the “five year” requirement was met in march 2025, without waiting for five years
The “single house” is considered to mean that parents do not have any other property (including goods, affordable housing, etc.) throughout the country, and if the parents have two houses, one of which is five years old and the other is dissatisfied, the five-year-old home is considered “single house” and is entitled to tax and fee benefits
3. Nuances vary from city to city: for example, the tax is 1. 5 per cent for first flats and 2 per cent for first flats in first-line cities, and some cities have a tax exemption for stamp duties on family-to-family purchases. It is recommended that prior transfer should be made to the local real estate registration centre by calling a telephone call (12345 to the property registration line) to confirm specific local policies and avoid running for nothing。
Others would ask, "is it cheaper to inherit a household?" inheritance does not indeed have to be taxed, but only a small amount of stamp duty is required, but the inheritance can only take place after the parents have passed away and is not necessary if the parents wish to transfer the house to their children. In addition, there are 20 per cent tax problems (unless only five years of accommodation are met) with respect to the follow-up sale of inherited housing, so that inheritance is not an option in terms of the need to “live in”。
We have a clear policy basis for this process. Circular of the ministry of finance of the general directorate of state taxes on personal income tax issues in respect of non-reimbursable properties granted to individuals (fiscal) [2009] no. 78) provides that, while a personal income tax is exempt from payment for family gifts, the actual cost of the purchase of the house is used as the basis for the calculation of a tax in the case of subsequent transfers by the grantee; and the ministry of finance circular of the general state tax administration on the adjustment of the tax policy on the transfer of personal housing (fiscal (2015)) no. 39) expressly exempts individuals from vat and personal income tax for the transfer of their only dwelling after five years. These policies have long been effective and can be consulted。
It has been measured that the entire transfer process is actually simple and that the key is to choose the right way and to have the materials ready. Many felt troubled because they had initially chosen the wrong way of moving, or had not prepared all the materials, leading to several trips. A three-day contract to pay a tax to pass a residence permit will be fully completed and will save money, as long as steps are taken “to confirm that the house has reached the age of five years as the only ready relative certificate and the certificate of eligibility to purchase the house”。
Finally, i'd like to ask you: have you ever had a real estate transfer around you? A gift or a sale? Have any problems with taxes and fees or procedures been encountered? If it were you, would it take priority to save money now or to balance the future with the future? We welcome the sharing of your experience and views in the comment area, as well as the possibility of raising specific issues that we can discuss together。
