Free cars given away

f you want to give your car away as a gift, you are well advised to record the gift contractually. It is advisable to conclude a contract that is similar to a sales contract. All essential components that are relevant to a sale (e.g. exclusion of a guarantee) should be recorded in it. Such a document helps both the giver and the recipient, because both sides are fundamentally secured.

If the car is to be used abroad in the future, it is all the more important to conclude a contract. It happens that registration free cars for needy people  authorities want to find out after a few years where a once-registered car has gone and whether there is proof of recovery. The contract should be kept for a corresponding length of time in order to be able to prove the gift and to be able to track the transfer of the vehicle.

What many people do not consider: In Germany, gifts are considered taxable. There is a tax-free allowance, but this varies depending on the relationship. If there is no relationship, the allowance is only 20,000 euros - for a period of ten years. Depending on the value of the vehicle and any previous donations, there may be an obligation to report a gift to the tax authorities and to tax it accordingly.

The registration of the vehicle is another point that should be considered when giving away. For reasons of simplicity, it is advisable to hand over the vehicle in an approved manner. The recipient can immediately transfer it and then, for example, register it. However, it should be borne in mind that the deregistration / re-registration can only be carried out by the person who is in possession of the vehicle documents including the registration certificate part II.