Gifting a flat – everything you need to know about it

Gifting a flat is one of the most popular ways of passing a property to a loved one. Transferring a home free of charge, however, requires completing many formalities and understanding the legal provisions. What should you be aware of before taking such a step? Here is the most important information.

What is a gift of a flat?

A gift is a legal act in which the donor transfers specified assets to the donee, in this case a flat. This process is regulated by the provisions of the Civil Code and by the Inheritance and Gift Tax Act. An important element of a gift is that the donor transfers the assets free of charge, thereby expressing their will to make a gift.

Formalities involved in gifting a flat

Transferring a flat as a gift requires signing an agreement in the form of a notarial deed (akt notarialny). This is an extremely important element, without which the transfer of ownership will not be valid. To draw up such a deed, the following documents will be needed:

• confirmation of ownership of the property (e.g. a notarial deed, a decision confirming the acquisition of an inheritance);
• the land and mortgage register (księga wieczysta) number, if one has been established;
• information about the subject of the agreement (type, area, address);
• a certificate from the tax office confirming payment of inheritance and gift tax or exemption from it;
• a certificate from the housing cooperative confirming the right to the unit, in the case of a cooperative ownership right (spółdzielcze własnościowe prawo do lokalu) to a flat.

In addition, the details of both parties – the donor and the donee – are required.

Costs of gifting a flat

Drawing up a notarial deed involves a notarial fee, the amount of which depends on the value of the property. The maximum rates are set by a regulation of the Ministry of Justice. The amount of the fee is calculated according to the following scale:

• up to 3,000 PLN - 100 PLN;
• from 3,001 PLN to 10,000 PLN - 100 PLN + 3% of the amount exceeding 3,000 PLN;
• from 10,001 PLN to 30,000 PLN - 310 PLN + 2% of the amount exceeding 10,000 PLN;
• from 30,001 PLN to 60,000 PLN - 710 PLN + 1% of the amount exceeding 30,000 PLN;
• from 60,001 PLN to 1,000,000 PLN - 1,010 PLN + 0.4% of the amount exceeding 60,000 PLN;
• from 1,000,001 PLN to 2,000,000 PLN - 4,770 PLN + 0.2% of the amount exceeding 1,000,000 PLN;
• above 2,000,000 PLN - 6,770 PLN + 0.25% of the amount exceeding 2,000,000 PLN.

Gift tax – do you always have to pay it?

Gift tax depends on the value of the flat and on the relationship between the donor and the donee. The closest family (the so-called zero tax group) can count on a complete tax exemption, provided the gift is reported within the appropriate time limit. This group includes, among others, the spouse, children, grandchildren, parents and siblings. It should be stressed here that in such a case reporting the gift to the tax office is mandatory.

Selling a flat received as a gift – what about tax?

Receiving a flat as a gift does not restrict the right to sell it. It should be remembered, however, that the obligation to pay income tax (19%) arises if the disposal takes place before 5 years have passed since the property was acquired. After that period the transaction is tax-free.

Interestingly, there are situations in which the tax can be avoided even if the sale takes place earlier – for example by using the proceeds for housing purposes.

Summary

Gifting a flat is an advantageous way of passing a property to a loved one. It is worth preparing for it properly – a well-thought-out approach will help you avoid unpleasant surprises. If you want to sell a flat received as a gift and need support with the sale, use the services of an estate agency in Katowice. By entrusting the transaction to specialists, you can be sure that the sale will go smoothly and in accordance with the applicable legal provisions.