Parental Benefit

Συμβολαιογραφικές & Νομικές Υπηρεσίες


By the parental benefit act any one of the parents grants to the child property either to create or maintain financial or family independence, or to start or continue an occupation. To enter a parental benefit requires a contract between parent and child, which, if it concerns the grant of a property, must be done by notary public deed, which then is transcribed in the competent Land Registry or entered in the competent Cadastral Office.

Common case of property parental benefits:
Parental benefit by full ownership: the child becomes full owner of the property, has the absolute power and may dispose of it as they please.
Parental benefit by bare ownership and withholding the right of usufruct by the provider: the child becomes bare owner of the property only, has no right to exploit benefits, shall become full owner when the usufruct right is joined with the bare ownership, either by the posterior death of the usufructor – parent, or by the waiver of the usufructor – parent from the right of usufruct.
The parental benefit by bare ownership of properties is chosen more commonly in relation with the grant by full ownership, because it ensure for them the right of exploitation and use of the properties they transfer as long as they live, while parallel to this is also the most economically advantageous choice than that of the full ownership transfer.
Waiver of property use due to parental benefit: When the child has already acquired the right of bare ownership of a property, the usufructor – parent is entitled to, as long as they wish, waive his right of usufruct in favour of the bare owner.
The decision to waive usufruct has usually as criterion either to render the bare owner, following the waiver, full owner of the property now, or the usufructor shall cease being charged with income and property tax for the specific property, which taxes shall now burden the full owner.
Establishing property usufruct right due to parental benefit: The act by which the property owner concedes to their child the right of usufruct of the property, that is the right to fully exploit the property and to use its benefits, while the parent himself continues to withhold the right for bare ownership of said property. The establishment of the usufruct right may be done for a specific period or for life in favour of the beneficiary.
This act is effected mainly for the purposes of exemption of the main property from income tax and partly from the real estate property tax, which shall burden the child to whom usufruct shall be transferred, either for the purposes of financial relief of the child from income that will be collected from the use of the property transferred to them.

Parental benefit taxation:
Parental benefit is tax free up to a certain value as set forth each time by the tax law. Beyond the tax limit, parental benefit is taxed based on a scale and always in accordance with the applicable tax law each time.

Current tax scale for parental benefits (for declarations, in time by 8.1.2010):

Tax Scale Rate Tax Step Property Value Tax
150.000,00 € 0% 0 € 150.000,00 € 0 €
150.000,00 € 1% 1.500,00 € 300.000,00 € 1.500,00 €
300.000,00 € 5% 15.000,00 € 600.000,00 €
Excess 10%






• The informal parental benefits money taxed outside scale with rate of 10%.

Usual documents required:

• Tax clearance of grantor parent.
• Social security clearance for the grantor parent from