Getting "GIFT" money from India towards buying property

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DigantaM
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Getting "GIFT" money from India towards buying property

Post by DigantaM » Fri Jun 12, 2020 11:22 am

Hi,

1st of all , thank you for creating this wonderful platform.

Could you please help me understand the best way to get some financial help from my parents in terms of gift towards buying a house in Ireland ?

This amounts to 20 Lakh INR .

Q1. Please advise on the exact process if someone had went through this process.

Q2. Please advise on tax implications, if any.

Best regards,
Diganta

Ajitpals
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Re: Getting "GIFT" money from India towards buying property

Post by Ajitpals » Tue Aug 04, 2020 10:50 am

Hi,

Money need to be transferred to your saving bank/Current account. Since your parents are sending the money, you should fall in Group A category in CAT (capital acquisition Tax). They can transfer upto euro 350000 tax free above that you pay 33% tax on the balance amount. There are also some threshold Per year.(Check Revenue website.) amount you have mentioned. Should fall in that threshold.

1. Ask your parents to transfer money from india as Gift amount toward you house purchasing.
2. They need to submit your current passport copy + their own documents (Adhaar/Passport/PAN) at Indian Bank
3. Filled the letter stating that Gift is non-refundable and you will not pay it back. (Parents). Gift template letters are available online. Google it.
4. If you buying house, get it also checked with your Mortgage Advisor, They will give you their Official Gift letter, need to filled by your parents and get the scan copy. Now the tricky part is Gift letter might be simple and straightforward. Or depending on which bank you apply, your parent might need get gift letter,signed by notary or registered on stamp paper. Here your + your family solicitor will help.
5. Once the money arrive into your account. Their will be 10-25 euro fees will be deducted from your bank account + some fees , if intermediary bank is involved. expect around 20-50 Euro.

Also before buying house bank will require to see your are saving 1000 per month in a bank account for example. this could vary.

***** Def. Check with your Solicitor + Mortgage Bank for further information before starting the process.

Hope it helps.

Cheers,
APS

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