Gifting real estate is one of the most common and favorable ways to manage assets within a family. Whether it is a transaction between parents and children, grandparents and grandchildren, or spouses, gifting allows for the quick and cost-effective transfer of ownership.
Why Choose Gifting?
Under current Hungarian legislation, gifting between direct-line relatives (parent-child, grandparent-grandchild), spouses, and siblings is completely exempt from transfer duty. This means that after acquiring ownership, the donee does not have to pay any acquisition duty to the tax authority (NAV), regardless of the value of the property.
Fixed Attorney’s Fee
Our firm handles the drafting of real estate gift agreements and provide full legal representation for a fixed gross fee of 80,000 HUF, regardless of the property’s value.
The attorney’s fee includes the following:
- Personal or online consultation regarding the details of the gift.
- Drafting and countersigning the gift agreement.
- Advice on tax and duty implications.
- Full land registry proceedings (registration of ownership).
- Notification to the tax authority (NAV) regarding the duty exemption.
- Ongoing information about the status of the procedure until registration.
Additional Costs
In addition to the attorney’s fee, the following official costs are to be expected:
- Land registry procedure fee: 10,600 HUF (per property).
- Certified title deed (ownership certificate): 4,800 HUF (essential for drafting the document).
Retention of Beneficial Interest (Life Estate)
It is a common requirement during gifting that the donor wishes to ensure their housing or the right to use the property for the rest of their life. In such cases, we establish a life-long beneficial interest (usufruct) in the agreement in favor of the donor, providing them with maximum security for the future.
The Gifting Process
- Consultation: We clarify the parties involved and any establishment of beneficial interest.
- Data Collection: We retrieve the latest certified title deed of the property.
- Signing: The document is signed at our office or, if requested, at an external location.
- Administration: We submit the documents to the Land Registry and the Tax Authority.
- Registration: The Land Registry registers the new owner, and we notify all parties in writing.
If you have any questions or would like a quote, please contact us by phone, email, or use the form below.
Dr. Hercsik Alexandra Law Office
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Frequently Asked Questions – Real Estate Gifting
Gift & Donation
Do I have to pay duty when gifting real estate?
As a general rule, a 9% or 18% gift duty must be paid after gifting real estate, but there are very important exemptions from duty.
When is gifting tax-free?
- Between direct relatives: (parent-child, grandparent-grandchild), gifting is completely tax-free, regardless of the value.
- Between spouses: gifting between each other is also tax-free.
- Between siblings: gifting is also tax-free (since 2020).
When do you have to pay duty?
In all other cases (e.g., between domestic partners, more distant relatives, or strangers), the duty rate is 9% for residential property and 18% for other property (e.g., land, holiday home).
Our Related Service:
Real Estate Gift Agreement
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