Granting of a right to purchase triggers real estate transfer tax liability

If a bequest only provides for a right to purchase real estate belonging to the estate, the purchase is not subject to the real estate transfer tax exemption for acquisitions upon death.

Real estate that is part of an inheritance or gift is not subject to real estate transfer tax when it is transferred to the new owner. If, on the other hand, the testator has only granted the right to purchase a property belonging to the estate to one of the beneficiaries by bequest in the will, the purchase agreement is subject to land transfer tax. In this case, the Federal Fiscal Court sees no reason for a tax exemption under the regulations for acquisitions upon death. The legal basis for the claim to transfer of ownership of the real estate is the purchase agreement concluded with the heir and not the testator's bequest. Whether a bequest grants a direct claim to transfer of ownership or only a right to conclude a purchase agreement must be determined on a case-by-case basis.