You may be thinking…

“A gift is a gift – why should it matter whether it’s money or real estate?”
But that’s exactly what matters. While money can be transferred with a simple payment, real estate requires a written agreement, verified signatures, and registration in the Land Registry.

Clients often ask me

• What is the difference between donating money and real estate?

• Do I always need a written contract?

• How is the donation entered in the Land Registry?

• Do both types of donations involve taxes?

Donating money – in a nutshell

• Can be oral or written (for larger amounts, written form strongly recommended).

• Most common form – bank transfer or cash.

• Tax implications: exempt between close relatives; taxable income between non-relatives.

• Risk: without written proof, it may later be disputed whether it was a donation or a loan.

Donating real estate – in a nutshell

• Always requires a written contract with precise identification of the property based on Land Registry data.

• Verified signatures of both donor and donee.

• Registration in the Land Registry (administrative fee CZK 2,000).

• Tax implications: same as for money (exempt within family, taxable otherwise).

• Risk: incorrect wording in the contract → Land Registry may reject the entry.

The most common mistakes

• With money: no contract at all → later disputes whether it was a gift or a loan.

• With real estate: vague parcel description → Land Registry rejects the entry.

• Assuming that “gift tax” doesn’t exist at all → tax authorities may still require reporting as income.

Step-by-step process

For donating money:

1. Agree on the amount and method (transfer, cash).

2. For larger amounts, prepare a written donation agreement.

3. Consider possible tax implications.

For donating real estate:

1. Prepare a written donation agreement with precise Land Registry identification.

2. Verify signatures at CzechPOINT or with a notary.

3. File a proposal for entry into the Land Registry.

4. Pay the administrative fee.

Real-life examples

• A client gave her daughter a large sum of money “just like that” without a contract. Later, the daughter claimed it was a loan. The case ended up in court.

• Parents donated land to their son but wrote the parcel number incorrectly in the contract. The Land Registry rejected the entry, and the contract had to be redone.

Lawyer’s recommendation (checklist)

☑ for money, always use a written contract (especially for larger sums)
☑ for real estate, a written contract + verified signatures are mandatory
☑ always ensure precise identification of the donated item
☑ account for possible tax implications
☑ with real estate, allow time for Land Registry registration

FAQ

Do I need a written contract when donating money?
Not legally required, but highly recommended for larger amounts.

How long does Land Registry registration take?
Usually 20–30 days.

Is real estate donation taxable?
Not within close family; between non-relatives, it may be subject to income tax.