A gift does not transfer the loan. The mortgage stays on the flat, so the bank can enforce against the recipient's property, but the donor still pays the instalments. For the recipient to take over the loan, the bank's written consent is needed. A debt taken over also changes the tax picture: the recipient pays 2% PCC (tax on civil-law transactions) on its value.
The mortgage stays on the flat
The mortgage is entered in the land and mortgage register (księga wieczysta) of the property and is not tied to a person. The bank can seek satisfaction from it regardless of who the owner is. This does not make the recipient a borrower: they are not liable with their salary or savings, but if the donor stops paying, the bank can direct enforcement at the flat.
The loan stays with the donor
A gift does not change the loan agreement. The donor still pays the instalments and is liable with all their assets. The bank cannot prohibit selling or giving away the flat, but the loan agreement may contain its own terms for a change of owner. Read it or ask the bank before you book an appointment with a notary.
When the recipient is to repay the loan
Taking over the debt requires the bank’s consent in writing. The bank will check the recipient’s creditworthiness as it would for a new loan. Without this consent, a clause in the deed saying that the recipient takes over the loan works only between the parties: towards the bank the donor is still the debtor.
The other route is to repay the loan before the gift or with the recipient’s money. The bank then issues consent to remove the mortgage from the register.
Taxes
The closest family pays no gift tax, and with a notarial deed they also do not have to file the SD-Z2 form (the gift and inheritance tax notification) themselves. However, if the recipient takes over the loan, that part of the agreement is subject to the tax on civil-law transactions: 2% of the value of the debt taken over, also within the family. Discuss the effects on the donor’s side, including in personal income tax (PIT), with a notary or a tax adviser.
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