Please note that the real estate acquisition tax has been abolished and the effective date in this respect is 31 March 2020. For more information, see the article Abolition of real estate acquisition tax.
Who is the taxpayer
Many people still remember the former situation. The tax was usually paid by the seller and the buyer was only in the position of a guarantor, whose obligation only shifted if the seller failed to pay the tax. However, according to the Senate’s statutory measure which now regulates the tax on the acquisition of immovable property, it is the buyer who is the taxpayer in the case of a transfer of immovable property for consideration.
Today, the seller is not even a guarantor and does not actually have to be concerned with the payment of the tax. Since November 2016, the tax has been imposed only on buyers who, at worst, have at least a property that the state can take away if they do not pay the tax. No other choice is possible under the law.
Real Estate Purchase or Sale
We provide a complete package of legal services related to real estate sales and purchases, including reservation contracts and escrow services. We will also help you with all tax and land registry issues. Our work is fast and accurate, ensuring a worry-free transaction. You’re also welcome to pay after services are provided.
How high is the tax actually?
The amount of the tax has not changed despite the change in the taxpayer, although this was also originally planned. For the most common transfers for consideration of flats, houses, cottages, chalets or garages, the property tax is calculated as 4% of the agreed purchase price. However, the purchase price must be more than 75 % of the local normal price. This will be verified by the tax office from price maps and other documents collected by the tax office. If you are filing a tax return, you often have to give the tax office detailed information about the property you are buying, from the age of the building to the number of toilets.
However, if the property you’re selling is exceptional for some reason (for example, in extremely poor condition with extensive renovation needed), this may not be an option. The purchase price is small, but the surrounding properties are expensive and so the tax is high.
Therefore, the legislator has also allowed for alternative tax determination. You can have an expert’s report done (in addition, you can deduct the cost of the report from your tax base). Compare the amount of the agreed price in the contract with 75% of the price in the appraisal. Tax is again paid on the higher amount.