Are you selling or purchasing property? Then you should be prepared for real property transfer tax. With the beginning of 2013 there have been few changes you should know about.
Tax Will Increase
Subject to real property transfer tax is a transfer of payment or ownership transfer. Also an exchange of properties is considered a subject to this tax. An exchange of properties is considered as one single transfer.
Ownership share transfer in housing co-operative is not a subject to this tax. Real property transfer tax is very often criticized as unfair because it punishes those who want to provide for themselves in older age and invest into own housing.
Unfortunately for us exactly the opposite is the truth and the tax from real property transfer has been increased again.
While last year it was 3 % from price of property, since the beginning this year it has risen up to 4 %. It does not regard any family relationships among those who transfer the property. Taxpayer is still the seller. Buyer or acquirer represents only a guarantor.
That means that in case the seller would not pay this tax, it could be required from the buyer. Buyer then has the possibility of exacting the money from the seller. With beginning of 2014 there is an expected change to the person of taxpayer who then would be the acquirer.
Tax From Expert’s Opinion
Tax base is represented by the price of property previously determined by appraiser. In case that price was higher than the one set by the appraiser, then tax base represents this higher amount. To pay this tax, it is necessary to file real property transfer tax return.
That needs to be filed to certain deadline. It should not be longer than 3 months from the date when the property was overwritten in the land registry. Tax return should include certified copy of purchase contract and expert’s opinion on the price.
Big changes are also in the tax administration. Taxes will be collected by one of 14 tax offices in each region. In other words, you pay in the region of your permanent residence.