What is the spouse swing?

• 1. what is the spouse swing?
• 2. how does the spouse swing work?
• 3. why is the spouse swing advantageous?
• 4. what are the requirements for the spouse swing?
• 5. can the spouse swing be operated with multiple properties?
• 6. spousal swing for tax professionals: how to save on notary fees
• 7. the spouse swing: also possible with children

1. what is the spousal swing?

The spousal swing is a tax-saving model based on the transfer of assets between spouses. One spouse sells a rented property to the other spouse.

2) How does the spousal swing work?

One spouse is the private owner of a property that he or she does not use himself or herself but rents out. After a holding period of at least ten years, he sells this property to his spouse at a local price. The holding period of ten years ensures that no speculation tax is due on this transfer of assets. In addition, no real estate transfer tax is due on contracts between spouses.

Example calculation:

Assume you have a rented property that you bought more than ten years ago. The current market value is 300,000 euros. By selling it to your spouse, you can avoid the speculation tax of 25,000 euros (25% on the profit of 100,000 euros).

3. why is the spousal swing advantageous?

The spousal swing makes it possible to create new depreciation potential and thus save taxes. The increase in the value of the property creates an increased depreciation amount, which reduces income tax.

Example calculation:

Assume your property has an annual depreciation of 2%, which equals 6,000 euros per year. By selling it to your spouse, you can apply the depreciation to the new purchase price and thus reduce your income tax by 6,000 euros.

4. What are the requirements for the spousal swing?

The property must belong to only one spouse, and they must be legally married spouses. In addition, the terms of the sale must correspond to the sale to a third party, and there must be no abuse of structuring opportunities.

5. Can the spousal swing be operated with multiple properties?

Yes, the spousal swing can be conducted with multiple properties as long as the requirements are met. This provides risk mitigation and additional tax benefits.

6. spousal swing for tax professionals: how to save notary fees

By forming a civil law partnership (GbR), you can minimize the notary fees normally incurred when selling real estate. However, this requires professional tax advice.

Example calculation:

Assume that the notary costs for the sale of real estate amount to 5,000 euros. By establishing a GbR, you can significantly reduce these costs and thus lower your total expenses.

7. the spouse swing: also with children possible

The spousal swing is also possible with children, but you should consider the inheritance tax implications. Careful planning is crucial here to avoid tax pitfalls.