A change in legislation that took effect on the 8th of July 2020 made it possible for inheritances and gifts between siblings to become fee exempted in Hungary, regardless of the value limit. Previously, solely the inheritance and gifting of direct relatives, i.e. the parent and child, as well as the widow and spouse, were exempted from the fee.
The new regulation further applies to siblings by blood, half-siblings and sibling relationships based on adoption. The condition for exemption is that at least one of the siblings’ parents or adoptive parents shall be the same.
The exemption further applies to pending cases, i.e. all gifts or inheritances between siblings in which the National Tax and Customs Administration of Hungary (hereinafter: NTCA) has not yet made a final, legally binding decision by the 8th of July 2020.
If it is clear from the acquisition documents that there is a free acquisition of property between siblings – an inheritance or a gift – there is no need to submit a separate application, the NTCA will grant the exemption ex officio.
If the gifted property is a real estate, the exemption could further be marked on the data sheet called ‘B400’ to the Hungarian Land Registry.
If, after the acquisition of assets, the NTCA has imposed a fee, either by order to pay or by decision, and this decision has not yet become final on the 8th of July 2020, then the decision-making directorate may be asked to cancel the established fee or to refund the fee paid.
If you need more information on this topic, or if it has become topical to conclude a gift agreement, feel free to contact our office!