Real Estate Acquisition Tax Paid by the Buyer

Real Estate Acquisition Tax Paid by the Buyer

The real estate acquisition tax, formerly known and still commonly referred to as the property transfer tax, amounts to 4% of the property’s value (despite earlier Senate proposals to reduce it). Since November 2016, the buyer has been responsible for paying this tax to the Financial Office.

Payment of the Real Estate Acquisition Tax

The tax is always paid on the higher of two amounts — the price stated in the purchase agreement and 75% of the value determined by the expert valuation report. The buyer is required to file a tax return for the real estate acquisition tax by the end of the third calendar month following the month in which the ownership transfer was registered in the Land Registry. The tax return must be submitted to the Financial Office with jurisdiction over the location of the property.

If you need assistance, please do not hesitate to contact us. We will be happy to prepare the expert valuation report for you.