Land Registry

The Szeged Land Registry WebsiteLand Registry Office were very kind and helpful in stamping my final property contract.

Szeged Land Registry

Their stamp proved to the immigration officials that I had a property in my name.



How To Gift (Donate) A Hungarian Property To A Hungarian

Donate Hungarian Property - Land Registry - Gift Tax - Utility Accounts

If you want to gift (donate) your Hungarian property to a Hungarian, or anyone else for that matter, you will be pleased to know the whole process is very straight forward.

To use a real life example: I recently gifted (donated) my apartment in Szeged (Hungary) to my Hungarian girlfriend's son, to give him a start and some sort of security in life; with the knowledge and understanding that it is also for his sisters and brother.

Gifting A Property - THE LEGAL PAPERWORK

The first step to gifting (donating) a Hungarian property is to find a good property lawyer. Although I have my Hungarian solicitor in Szeged, as I was in the UK at the time Tünde (my Hungarian girlfriend) decided to find me a property lawyer in Budapest who could fly over to the UK to sign all the necessary paperwork. As always, Tünde came up trumps and found an excellent property lawyer.

We (Tünde and I) met them in a London (UK) hotel whereby I showed them my Passport, Birth Certificate (with my mother's maiden name on it) and Driving License (with current UK address on it). They showed me a copy of the latest Land Registry document for the apartment in Szeged (Hungary) to officially acknowledge they knew I was the current owner of that apartment property and that the property had no court restrictions (markers) on it whatsoever. I had all the rights to sell the apartment or gift (donate) it.

NOTE - If a property owner owes money to the Hungarian taxman or there is a divorce or inheritance dispute against the property for example, a court might place a 'sales restriction' order on that property until further notice whereby the land registry is then told to put a 'marker' on the land registry document for that property; to let anyone and everyone know that property cannot be sold or gifted. No 'right to sell or gift'.

Once each person showed their identification documents (i.e. passports and proof of residence) and legal documents (i.e. land registry title deed), if applicable, the legal paperwork (i.e. the 'property gift' contract prepared by the property lawyers) was shown and signed; by me (the current property owner), Tünde's son (the inheritor), Tünde (a witness) and the two property lawyers (lawyers and witnesses). As always with Hungarian bureaucracy, between 8 and 12 pieces of legal paperwork had to be signed. And you always end up forgetting how many papers you actually signed!

Gifting A Property - THE LAND REGISTRY

With all paperwork signed and photocopied, the Hungarian property lawyers flew back to Hungary to inform the national land registry in Budapest (Hungary) that my Szeged (Hungary) apartment property had been gifted (donated) to Tünde's son and therefore its land registry ownership document (title deed) needed updating accordingly.

It took just over three weeks for Tünde's son to receive his new land registry title deed in the post, acknowledging him as the new owner of my old apartment property in Szeged (Hungary) and me as the previous owner.

NOTE: If my property would of been bought by him on a mortgage, the title deed would also have mentioned his mortgage lender (i.e. his bank); just like in the UK.

Gifting A Property - TRANSFERRING THE UTILITY ACCOUNTS

From Tünde's son's perspective: Once he had ownership of the property he then went to the utility companies, housing association and so on to put everything in his name. In the meantime, while these things were still in my name, I gave him a 'permission letter' for those occasions where it was better for him to have one.

As an example: The heating company owed me money, which they were trying to avoid paying me if the heating account would of gone into someone else's name. So I wrote Tünde's son a permission letter stating that I was happy for that owed money to be passed onto him; which the heating company respected and paid. It was the equivalent of £100 that the heating company owed me.

Gifting A Property - THE GIFT TAX

After gifting the apartment it took roughly one month for the Hungarian tax office to contact Tünde's son, by recorded post, for their 9% of gift tax; which worked out at 900,000,000 HUF (£2,647). And with Tünde's son being Hungarian he had the chance to pay the tax office in monthly installments, which he did as three installments of 300,000,000 HUF (£882) over three months.


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