In Greece, the significant tax exemption of €800,000 for parental gifts has prompted many individuals to make use of it for resolving property issues. The Independent Public Revenue Authority (AADE) has issued a circular that clarifies the taxation process of usufruct and bare ownership related to property transfers. This includes details on how the value of property rights is calculated, when the tax obligation arises, and who is responsible for tax payment.

One key aspect addressed is how the age of the usufructuary influences the perceived value of the property they own through this right. Specifically, younger usufructuaries, especially those under 20 years old, are deemed to hold a larger percentage of the property's value—80% of full ownership. Conversely, for those over 80 years old, this percentage decreases significantly to just 10%. For usufructs that are set for a definite period, the value is computed as one-twentieth (1/20) of full ownership for each year of duration.

These clarifications have implications for estate planning and could impact how families handle the transfer of wealth through property within Greece. As the tax laws evolve, understanding these regulations becomes crucial for anyone looking to navigate property transfers, ensuring compliance while maximizing tax benefits.