Donation

Donation consists in the free transfer of a real estate by the donor to the recipient. The real estate donation agreement should be drawn up in the form of a notarial deed.

Pursuant to Article 890 § 2 of the Civil Code, the obligation to maintain the form of a notarial deed for the declarations of both parties to the donation agreement is provided for when transferring the ownership of real estate (land / premises), the right of perpetual usufruct and the cooperative ownership right to the premises.

However, one should bear in mind that:

  • the donor may revoke the donation if the recipient has been grossly ungrateful to the donor,
  • if the donor becomes impoverished, the recipient shall provide the donor with means of support, within the limits of the still existing enrichment.

  Required information

  • particulars of the parties to the agreement:
    • in the case of natural persons: - first name, - surname, parents’ first names, - identity card’s series, number and validity date, - Polish Resident Identification Number (PESEL), - marital status, - excerpt of a notarial deed documenting an agreement on marital property (if marriage of the party to the agreement is governed by a contractual marital property regime), - residence address,
      in the case of legal persons: - company, - particulars of the representatives, - number of entry into the National Court Register (KRS), - Tax Identification Number (NIP), - Polish Business Registry Number (REGON), -registered address,
    • object of the donation,
  • value of a subject of donation,
  • information on release of the subject of donation

Documents required for all donation agreements:

  • in the case of natural persons: identity card or passport,
  • in the case of legal persons: the company’s articles of association or the statutes, resolutions and approvals of authorities necessary to conclude the agreement, if required by relevant provisions of law or by the articles of association/charter,
  • basis for the acquisition of real estate if the basis for the acquisition in the case of natural persons is:
    • inheritance, ordinary legacy, subsequent legacy, specific bequest, testamentary instruction,
    • donation, donor’s instruction established after January 1, 2007,
    • adverse possession,
    • gratuitous cancellation of joint ownership established after January 1, 2007,

it will also be necessary to provide the following:

  • certificates issued by the competent Head of the Tax Office on settling the tax on inheritance and donations as regards acquisition of the subject of the action on the above-mentioned basis.

Additional documents required in connection the subject of the agreement:

1. Cooperative member's right to residential premises without a land and mortgage register:

  • a certificate issued by a housing cooperative informing who is entitled to the premises being the subject of the donation,

2. Real estate constituting a developed or undeveloped plot of land:

  • valid extract from the land register together with an extract from a property map for all the plots of land included in the land and mortgage register, issued by the staroste competent with regard to the real estate’s location. The above document specifies, among others, the location, current area and boundaries of the plot of land, buildings built on the plot are shown there. The document is necessary to correct the plot’s designation in the land and mortgage register, to separate the plot from the land and mortgage register and to establish a new land and mortgage register for it.
    Extract from the land register should contain a clause stating that the document serves as the basis for making an entry in the land and mortgage register,
  • should there be any discrepancy between the real estate’s description in the land and building register and the land and mortgage register or in the event of separation of a part of the real estate - the extract from a property map should be provided with a clause for the purpose of making an entry in the land and mortgage register,
  • in the event that the real estate has been created as a result of a division - an extract from a property map should be provided with a clause for the purpose of making an entry in the land and mortgage register, and a decision approving the real estate’s division,
  • valid extract from the local spatial development plan for the acquired plot of land (issued by the commune office competent with regard to the real estate’s location). This document confirms the purpose of the plot in the local plan adopted by a given commune, confirming, inter alia, that the plot of land is a construction plot, specifying the development conditions in a given area, providing information if there are any specific requirements for activities on this real estate, or a decision on land development and management conditions,
  • certificate confirming that the plot of land is not situated in the area of revitalization or in the Special Revitalization Zone (issued by the commune office competent with regard to the real estate’s location). The above document is necessary because by means of a resolution the commune council may establish a pre-emption right to all the real estates located in the revitalization area, and if an agreement is concluded which ignores the pre-emption right reserved for the commune, the agreement shall be invalid,
  • certificate stating that the plot of land is not located in the area for which a simplified forest management plan has been drawn up or a decision has been issued specifying forest management tasks (issued by the staroste competent with regard to the real estate’s location). The above document is necessary because in the case of a sale of a plot of land covered by a simplified forest management plan or a decision, the State Treasury, represented by the State Forests, has a right of pre-emption in relation to the given plot, and if an agreement is concluded which ignores the pre-emption right reserved for the State Forests, the agreement shall be invalid.

Costs

1.Each time the notarial fee is determined individually.

The maximum rates are provided for in the Regulation of the Minister of Justice of June 28, 2004 on the maximum rates of notarial fees.
The cost of concluding a donation agreement depends, among others, on the type of the real estate donated and the market value of the subject of donation.

Contact me to determine the notarial fee related to the real estate donation agreement.

2. Donation tax

Acquisition by natural persons of ownership of objects located in the territory of the Republic of Poland by way of donation is subject to inheritance and donation tax.
Donation made to persons included in the so-called zero group (donation made to the spouse, descendants, ascendants, stepchild, siblings, stepfather and stepmother) is exempt from tax.
The amount of tax is determined depending on the tax group that the acquirer belongs to. Classification into a given tax group takes place according to the personal relationship of the recipient to the person from whom the goods and property rights have been acquired.

Consequently, the Act on inheritance and donation tax defines three tax groups:

  • tax group 1: spouse, descendants, ascendants, stepchild, son-in-law, daughter-in-law, siblings, stepmother, stepfather and parents-in-law,
  • tax group 3: other acquirers.

The tax is calculated according to the following tax scales:

The amount of the surplus in PLN
more than
The amount of the surplus in PLN br />up to< The tax amounts to:
1) from acquirers classified into tax group 1:
  10 278 3%
10 278 20 556 PLN 308.30 + 5 per cent of the surplus over PLN 10,278
20 556   PLN 822.20 + 7 per cent of the surplus over PLN 20,556
2) from acquirers classified into tax group 2:
  10 278 7%
10 278 20 556 PLN 719.50 + 9 per cent of the surplus over PLN 10,278
20 556   PLN 1,644 + 12 per cent of the surplus over PLN 20,556
3) from acquirers classified into tax group 3:
  10 278 12%
10 278 20 556 PLN 1,233.40 + 16 per cent of the surplus over PLN 10,278
20 556   PLN 2,877.90 + 20 per cent of the surplus over PLN 20,556

The tax obligation rests with the acquirer of the donated object, i.e. the recipient.

3. Court fees depend on the types of entries made in accordance with the Act of 28 July 2005 on court costs in civil cases.

4. Notarial fee for excerpts amounts to PLN 6 net (PLN 7.38 gross) for each started page.