Many people ask whether tax must be paid in the Netherlands on real estate received as a gift abroad, and whether it must be reported in the tax return.
Yes, if as a private individual living in the Netherlands you receive real estate located in Hungary (such as a house or a plot of land) as a gift, you must report this in your tax return submitted to the Dutch tax authorities (Belastingdienst). Since you live in the Netherlands, you are liable for tax on your worldwide income and your total assets.
Below I summarize the most important tax consequences and obligations:
Gift tax / inheritance and gift tax (one-off)
Reporting obligation: You must file a gift tax return if the value of the property exceeds the annual tax-free threshold. In 2026, the tax-free amount for gifts received from third parties or others (not parents) is €2,769 (€2,690 in 2025). For gifts from parents, this amount is €6,908.
Who pays? In the Netherlands, the recipient of the gift pays the gift tax based on the value of the property.
Double taxation: In Hungary, a property transfer tax or gift duty may also arise. Since there are agreements in place between the Netherlands and Hungary, it is generally possible to avoid double taxation in the tax return.
Income tax / Box 3 (annually)
Wealth tax (taxation of fictitious return): From January 1 of the year following the gift, the Hungarian property is included in assets taxed under Box 3.
Reporting: Foreign real estate must be reported every year in the annual personal income tax return in the Netherlands.
Important steps and advice
Valuation: It is advisable to have the Hungarian property professionally valued to determine its current market value. This value will be required for the tax return.
Notarial deed: The gifting of real estate is only valid if executed in a notarial deed.
Documentation: Keep all documents carefully and, if necessary, together with certified translations.
Professional advice: Due to the international regulations (Netherlands–Hungary), it is strongly recommended to involve a tax advisor or notary who is experienced in matters relating to foreign real estate, in order to avoid double taxation.