Rural Hungary

You're probably right Peter as I know you can't gift inner area properties unless you are a close relative and if the receiver of the gift is under 18 years of age, it is held "in trust" but I wasn't sure if it was the same for outer area.

Yes, don't think that's worth the risk as the it's easy to confirm the actual amount paid and opens up all sorts of repercussions. We have heard of the opposite happening as well, seller under declaring the value when advertising for tax purposes - very risky !!!

mawood47

Last Post. ref: Download new land Laws new Act 15-12-2013 & Amendment 2014 To members a translate document relating to the Law, now that I have complied to all sections of the new Land Laws to Foreigner's no one can place a argument that I have posted items, not knowing the present Land Laws and the proses from Start to Finish as of 9-3-2015 completed a successful purchase, I will not add to this post and any further comments or take part in any debates digger47

Rural Hungary

Digger, has somebody upset you? I'm sure if they have it wasn't intentional as we all value your input.

heli2010

could anyone explain the gifting of property to me please.
can a house in a village be purchased and then gifted to my son without needing to be held for 4 years?
does the house get gifted for 0ft and what would that do to the tax on a resale further down the line?

Rural Hungary

Is your son under 18?

heli2010

hi rural no eldest is 25 and resides in UK

John Gilbert

as we all value your input.[/QUOTE]

agreed

mawood47

No I not leaving at all just giving the chance for others to have the Land Law Documents downloaded to them selves. but now I have to 2 Plots 3,000m2 new build in June to start and sadly the "C" is back so flight back to uk when oncology calls digger47

Rural Hungary

Oh Digger, I am so sorry to hear that and hope all goes well for you, email me if there's anything I can do for you and keep in touch.

Rural Hungary

Sorry, didn't see your reply as others had posted by the time I came back to it

Don't take this as fact and best check with a legal expert but as far as I am aware - no tax is paid on gifting, on resale the usual transfer tax is paid on any profit. Profit is calculated using the value of the property at the time of gifting and the sale value. Personal income tax is payable on the sale value (this, I assume, helps prevent gifting as a means to avoid paying property tax) though with the seller being UK resident I guess they would have to declare and pay this in the UK.

jeromej

I'm trying to purchase a piece of land with house on agricultural ground. The object belongs to a bankrupt KFT with debts. We have rented the place the last few decades (leasehold) and our local legal experts is exploring ways to buy the object.

Having counselled a local legal representative, researching and reading all the information available on the internet the last 6 months I was getting desperate. It seemed that there would no progress or a solution in the near future.

I was daydreaming and wandering on sites about expats and jobs in Hungary and stumbled upon this forum. All the input on this thread is good additional information and you guys seem to be further than I was. I'm especially interested in the latest (translated) information available (the new land Laws new Act 15-12-2013 & Amendment 2014). Digger47 is referring to a download, but I cannot find the link.

Could somebody guide me to the documents? Your help will be appreciated.

Rural Hungary

I'm assuming there is no restriction on the sale of the property and so the debts shouldn't make any difference as your solicitor will deal with any liens when exchanging contracts. Is it the amount of land that is an issue as unless you fit certain farming criteria, you can only purchase 10,000 sqm.

mawood47

I have the Document and I was to download to Members But Being Thick Northerner tried to download a letter would not Work ,So If you wish I can Post one to yourself send PM and sort it out.. look as I was do to leave to start work on my plots but B rain again can gut up the hills to grape fields digger47

Rural Hungary

Digger, do you want to email it to me and I'll post it for you?

jeromej

The amount is not the problem.

I've been told that because the KFT is bankrupt their is no seller & their because there is a debt, therefore the sell is delegated to a governmental assigned institue. So there is not a owner to buy from.

We have been told that the 'for sale' will be published 60 days by the institue and the property will be sold by a closed enveloppe procedure. Additionally, because it's agricultural ground the 'locals' have a pre-emptive rights.

So, although we have rented for decades (the ownership would lapse to the renters according to former laws) now everybody can buy the property and locals will have the pre-emptive rights... We are exploring ways around this situation the keep 'our' house in the family.

Although we use legal experts I would like to have a clear understanding of the new law. Therefore I hope somebody can guide me to the document Digger47 is referring to.