“I buy a house and register it in my son's name”: the trick to avoid taxes

The idea of putting the house in your children's name appeals to most people who are about to buy a property.
By doing so, in fact, it is possible to save money and at the same time ensure a home for your children.
Those who choose to use this trick – which within certain limits is completely legal – often aim to avoid taxes related to the purchase and ownership of a second home.
Nothing wrong, but it is important to know precisely what the effects of this donation are, as well as the possible risks.
The issue of debt, however, would be much more thorny.
Placing the house in your children's name to avoid foreclosure is permitted only within strict limits.
In short, the strategy may also prove functional, but it is important to have all the relevant information.
Advantages of registering the house in the child's name As can be easily understood, the main objective of those who choose to buy a house and register it in the child's name concerns the possibility of accessing the tax advantages related to the first house, despite the possession of a second property.
In particular, the taxes to be paid at the time of the deed are the following: the registration tax at 2%, instead of 9% if buying from a private individual; VAT at 4% instead of 10% if you buy from the manufacturer; the cadastral and mortgage tax of 50 euros each, rather than a proportional amount if you buy from a private individual (200 euros if you buy from the builder).
It is the so-called first home bonus, which is only payable if the child to whom the property is registered does not own any others, provided that it is not a luxury property and that the owner transfers residence to the same municipality within 18 months.
from the deed.
The same also applies to tax deductions on mortgage interest.
Upon compliance with these conditions, you also benefit from the exemption from IMU and TASI.
As regards possible foreclosure, however, placing the house in the child's name is a safe move to protect the asset from any debts arising after the donation.
For the previous ones, in fact, there is always the risk of dispute by the creditors (unless the debtor parent owns other seized assets).
On the contrary, if the donation occurs earlier – i.e.
when the parent has no debts – it protects the property in question, as well as that of the parent (if he has no others) from seizure by the Revenue Agency.
Let's clarify that what appears to be a legal trick is a legitimate contract in all respects, because by registering a house in the name of the child (paying for it on his behalf or transferring a property in his favor) a transfer of ownership is effectively carried out.
The donor is legally impoverished of that asset, over which he has no rights.
In fact, risks can also arise from here.
In any case, it is worth specifying that if the asset is not already in the possession of the parent, but it must be purchased, an indirect donation is made to avoid the double notarial deed, provided that the payment by the donor is specified in the deed.
read also Who can remove the house received as a donation Disadvantages, risks and possible solutions As mentioned, one of the main disadvantages of putting the house in your children's name is the loss of rights on the asset.
This means that parents cannot make any claims on its management, benefit from any fruits (such as rent) and, if they live with their child, they could even be evicted at their discretion.
Be careful, however: if the child is a minor, the parents (only if they exercise parental responsibility) have a right of usufruct on the property, that is, they can live there, but not sell it.
The sale must be authorized by the guardianship judge, demonstrating that it is in the absolute interest of the children.
This does not happen when the children are adults or emancipated minors, unless the usufruct clause is included in the real estate donation.
Even in this case, housing will be permitted, and all other decisions are the responsibility of the child who owns the property.
Finally, the donation of a property or the money to purchase it in favor of the children constitutes an advance on the inheritance.
It is therefore not necessary to violate the legitimate shares due to the spouse and other children, if present.
read also Inheritance, how to (not) damage the favorite heir Transfer after separation or divorce Please remember that the law avoids taxation on agreements on the composition of family assets following a divorce or separation.
Basically, this means that by registering the house owned by one (or both) spouses to the child, you do not have to pay transfer taxes.
The parents' maintenance duty is thus facilitated.
read also Donation with usufruct, who pays the 2023 IMU?