What is the gift tax?
Watch the video
The deed of gift is gratuitous, that is, the former owner of the property does not receive any compensation for the gift. For example, the donee is not obliged to pay money or care for anyone. It is a pleasure to receive such a gift! But whatever one may say, it is considered income, and is this income taxed?
What is the gift tax for a close relative?
According to the law, if a donation contract is made between close relatives, then the tax is not charged. Close relatives are:
- children (including adopted ones),
Therefore, when you make a contract of donation, you must provide all the documents confirming such a relative relationship of the apartment owner and the donee. This document may be a marriage certificate, a birth certificate or a court decision, for example.
What is the tax on the donation contract paid by an outsider?
If the donee is a stranger to a person (that is, not a close relative), then he is obliged to pay the tax in full. What is the tax when donating an apartment? In 2011, the tax on donating property is 13%. It is calculated on the value of the apartment.