If you have purchased, inherited or otherwise acquired real estate (building or land), you are liable for real estate transfer tax. Real estate transfer tax returns are filed by notaries public within their jurisdiction, on the day of notarization of the signature on the contract.
If you are buying real estate from a company that is subject to VAT (value added tax), you as the buyer are not liable to pay real estate tax, and if you are buying real estate from a natural person, you are liable to pay real estate tax.
The basis for real estate tax is the market value of the real estate at the time the tax liability arises, and the tax rate is 3 (three) percent of the market value of the real estate at the time of its acquisition. The Tax Administration is authorized to determine the market value of the real estate by appraisal if the agreed purchase price deviates from the average.
Only those taxpayers who are determined to have a tax liability will receive a tax assessment decision. The taxpayer is obliged to pay the tax liability within 15 days of the date of delivery of the decision on determining the real estate tax, since an appeal does not postpone the execution of either the provisional or the tax decision.
You are entitled to exemption from real estate transfer tax if you inherited or received real estate as a gift and you belong to one of the following categories: spouse, common-law partner, formal and informal life partners, descendants and ancestors who form a vertical line, and adopted children and adoptive parents who are in that relationship with the deceased or the donor, former spouses, former common-law partners, and former formal and informal life partners when regulating their property relations. If a taxpayer is exempt from paying tax, they will no longer receive a decision on this exemption.
