If you've decided to purchase your first property, you probably already have a budget in mind, which should include additional expenses, such as taxes.
When buying, inheriting, or otherwise acquiring property, you become liable for real estate transfer tax. This tax amounts to 3% of the market value of your property at the time of acquisition.
For example, if you bought an apartment with a market price of 150,000 Euros, you are obliged to pay a tax of 3%, which in this case would be 4,500 Euros.
You will be exempt from this tax in situations such as:
Buying a building/apartment/land where you had a tenancy right.
Purchasing a residential building or apartment where you live based on a lease agreement.
Acquiring property based on a lifelong/support agreement.
Acquiring property in the process of restitution of confiscated property and consolidation of real estate.
Acquiring special parts of property by dividing co-ownership or division of joint ownership.
On the other hand, when you find yourself in the role of a seller in the real estate world, you may encounter another type of tax - income tax. This tax is determined by applying a rate of 24%, but like the previous tax, there are situations in which you will be exempt from paying it.
You only pay this tax if :
You sell the property within 2 years of its acquisition
You sell more than three properties within 5 years
So, if you decide to sell the property after two years of its acquisition - you don't have to pay the tax. Similarly, if you have lived permanently in that property/had a permanent residence registered at the same address and decided to sell it within two years - you also don't have to pay tax.
You won't have to pay the tax in situations where the property served as a residence for the taxpayer or supported members of their immediate family, if the sale is made between spouses and immediate family members, if the sale is directly related to a divorce, and during inheritance of property and property rights.
All of the real estate taxes apply only to individuals, while different tax rules apply to legal entities.
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