Gifting a flat – what you need to know

Gifting a flat is nothing more than transferring a property to another person free of charge – most often, a parent transfers ownership of a property to a child. However, it is not as simple as it may seem, and it is worth going into the details.

Gifting a flat – what does it involve?

Gifting a flat is the free transfer of a property to another person. It takes the form of a notarial deed (akt notarialny) and involves signing an appropriate agreement. As a result, ownership of the property passes to the donee. However, it should be noted that the whole transaction is not entirely free. There are a number of formalities to complete and fees to pay.

It is also worth mentioning that for the gift of a flat to be considered valid, the relevant documents must be prepared. The document showing how the property was acquired (for example a sale agreement), the property's land and mortgage register (księga wieczysta) number and a certificate from the housing cooperative are just a few examples of the documents you need to have with you. In addition, you will need a certificate from the head of the tax office confirming that inheritance and gift tax has been paid, as well as additional documents, such as a certificate confirming that the running costs of the property being given away have been paid regularly.

Gift tax on a property

When deciding to gift a flat, remember to observe the proper legal form and to complete the formalities with the tax office. Notary fees must not be forgotten either. The amounts really vary here, ranging from PLN 100 where the property is worth PLN 3,000, up to almost PLN 7,000 plus 0.25% of the excess if the property is worth more than PLN 2,000,000. Interestingly, the rates are negotiable and also depend on the particular notary's office. Be sure to add 23% VAT to these amounts. In addition to the notary fees and the tax office charges, you need to add a court fee of PLN 200. Nor should you forget the cost of certified copies of the notarial deed, for which PLN 6 must be paid for each page or part of a page, plus 23% VAT.

Selling a flat received as a gift

Selling a flat received as a gift works exactly the same way as selling a flat you bought yourself. There is, however, one matter worth mentioning, namely tax. If the flat received as a gift is sold after 5 years, no tax has to be paid. If, on the other hand, 5 years have not yet passed since the acquisition, the tax must be paid, and it amounts to 19% of the income from the sale. No tax has to be paid if the proceeds from the sale of the flat are spent on your own housing needs.