Unmarried couple, new property

Good morning,

We are planning to build a house, and of course legal questions arise that must be weighed in advance both from a tax and financial perspective. We already have a construction company and land. Now the situation is that my girlfriend's parents have a plot of land and would like to transfer it to us. In principle, this can be considered a gift. Banks obviously have different opinions on this; one bank evaluates it rather negatively concerning financing if a plot of land is transferred only to one person. Then there are other banks that view it positively. Can a gift be made to two people (meaning boyfriend and girlfriend are both registered by name in the land register!) A bank advisor told us that if a plot of land is registered in only one person's name, there could potentially be problems later in case of separation (for example, then one person would have no rights and could not access the assets of the land..) Many thanks in advance for the help

Yes, it can lead to problems! Or are you taking out the loan for the house construction together? That means a land charge must also be registered on her property.

What is the value of the property?

The parents of your girlfriend can gift her up to €400,000 tax-free within 10 years. You only have an exemption amount of €20,000. Above that, gift tax is due. If you are married, your wife could gift you up to €500,000 tax-free within 10 years. A direct gift from the parents of your girlfriend to you is therefore rather unlikely for tax reasons.

A bank advisor told us that if a plot of land is registered in one person's name, it could potentially cause problems in case of separation later on (e.g., one person might have no legal recourse and cannot access the property's assets..) Thank you in advance for the help

Of course, whoever is listed in the land register owns the land and house and can also sell it alone. In case of separation without marriage, the person without an entry in the land register ends up with nothing, as if they own nothing. A signed debt with the bank, of course, remains. In case of separation with marriage, the gain would have to be determined. Perhaps it might even be advantageous here not to have an entry in the land register, because then the payout must be made nicely in euros.

In principle, this can be considered a gift. Banks obviously have different opinions here, meaning one bank tends to view it more negatively for financing purposes if a property is transferred to only one person.

No. The bank wants security. No matter who owns it. And the bank wants debt service capability. Also no matter where it comes from.

Can a gift be made to two people (i.e. both boyfriend and girlfriend are recorded by name in the land register!)

Yes!

A bank advisor told us that if a property is registered in the name of one person, there could possibly be problems later in case of separation

Actually, there are no problems. Whoever is listed in the land register is the owner. Whoever is in the loan contract is the debtor. It's quite simple. It only becomes stressful between partners if the land register differs from the loan contract.

In case of separation while married, the accrued gains would have to be determined. Maybe it would even be advantageous here without a land register entry, because then a payout in euros would have to be made nicely

Accrued gains MUST ALWAYS be paid out in €. I have painfully experienced that myself

Of course, it will be paid out in euros, but if the gain lies in the appreciation of a property in which you hold 50% in the land register, then you first have to get out of the land register to get to the euros.