You may be asking yourself…

• Is a contract enough to gift a car, or do I also need to go to the authorities?

• What documents are required for the transfer of a vehicle?

• Do I need to pay taxes when gifting a car?

• What if the donee doesn’t re-register the car and a fine arrives?

Clients ask me…

• Is it necessary to have a written gift agreement for a car?

• How can I avoid fines for an unregistered transfer?

• Who pays the mandatory car insurance after gifting?

• How is gifting a car to a minor handled?

Car donation in a nutshell

A gift agreement transfers ownership of a car without payment. Since a car is an item recorded in the vehicle register, a written contract is required, and the transfer must be reported to the register. Without registration, the car remains “on paper” in the donor’s name – including all obligations and fines.

The biggest risks and common mistakes

1. No written contract – handing over the keys alone does not mean legal transfer.

2. Unregistered transfer – the donee uses the car, but the donor continues to receive fines.

3. Mandatory insurance – if not updated, the liability for non-payment remains with the original owner.

4. Hidden defects – the donor may be liable if they knew about the defect and failed to warn the donee.

5. Gifting to a minor – without court approval, the contract may be invalid.

Step-by-step process

1. Draft a written gift agreement for the car (donor, donee, vehicle identification, date).

2. Prepare the large and small technical certificates of the car.

3. Arrange a vehicle inspection at a testing station.

4. Submit the contract and documents to the vehicle register (both donor and donee).

5. Re-register the car in the donee’s name and arrange new insurance.

6. Keep copies of the contract and registration confirmation.

Examples from practice

• A father gifted a car to his son. The son didn’t re-register it, and all parking fines kept going to the father. The dispute eventually ended up in court.

• The gifted car had a hidden defect. The donee demanded compensation because the donor knew about the defect and concealed it.

• Grandparents gifted a car to their grandson. Since he was a minor, the court invalidated the gift without the guardian’s approval.

Why be careful with DIY contracts

On the internet, you’ll find dozens of “free templates” of car gift agreements. The problem is that most of them don’t address the current requirements of the vehicle register and lack crucial clauses about liability or insurance. In practice, such agreements often fail during re-registration.

Lawyer’s recommendation

• Always draft the agreement in writing and include precise vehicle identification.

• Don’t let the donee drive away without proof of completed re-registration.

• Make sure the donee has valid insurance.

• Within the family, gifts may be tax-free, but the formalities must still be completed.

Checklist for gifting a car:
☑ Written and complete gift agreement
☑ Vehicle inspection completed
☑ Transfer at the vehicle register done
☑ Insurance arranged
☑ Copies of documents stored

FAQ

Is a written gift agreement for a car required?
Yes, because the car is an item recorded in the official register.

Does the car always need to be re-registered?
Yes, otherwise the donor remains legally responsible for its use.

Is tax paid when gifting a car?
Within the family, no. When gifting to someone else, income tax consequences may arise.