Even within families, there may be transactions where it is useful and prudent to consult a solicitor. Consider, for example, a large cash loan, or a parent who wishes to gift a flat to their child and wants to minimise the tax and duty liabilities.
We would like to draw your attention to the fact that, due to changes in legislation, direct relatives of the donor (children, grandchildren, parents, grandparents, etc.) can now receive gifts free of charge. In practice, this means that if a parent wishes to gift an apartment to their child, for example, they will not have to pay gift tax, unlike under the previous regulations.
Another option for a free gift is savings deposits. According to the relevant legislation, savings deposits are defined as sums of money deposited by private individuals with credit institutions, including interest. This definition covers funds deposited under a bank account agreement, but excludes funds and interest deposited in business and settlement accounts, which are subject to mandatory reporting to the state tax authority under the taxation law. While this may sound complicated, based on this provision, we can give money to anyone free of duty if we pay by bank transfer to a Hungarian bank account.