All taxes and duties regarding the property bought, due at the date of the transfer, are payable by the owner (Vendor). The only taxes payable by the purchaser simultaneously with the transfer of the property in his name are the transfer fees which are payable on the market value of the property at the date of the contract, as valued by the District Land Officer, and not on the purchase price if it is lower.
The rates on the market value are:
|
Value of Property |
Transfer Fee Rate |
|
Up to €85,000 |
3% |
|
From €85,001 to €170,000 |
5% |
|
More than €170,000 |
8% |
If for example, the purchase of a property made in joint names (i.e. husband and wife, and provided that the total purchase price is more than Euro €85,430) the calculation for the total transfer fees are as follows:
For Example, if the market value is € 153,800:
|
Value |
Transfer Fee Rate |
Transfer Fee |
|
| The First |
€76,900 |
3% |
€2,307 |
| The Next |
€76,900 |
3% |
€2,307 |
|
Total |
€4,614 |
For all those property sales for which VAT was paid, no transfer fees are applied. For all other cases, a 50% reduction is applied.
In the case of free transfers of property between the following parties, the transfer fees are calculated on the value of the property as of 1 January 2013 at the following rates:
- from parents to children 0%
- between spouses 0,1%
- between third-degree relatives 0,1%
Exemptions from transfer fees
The following transfers are exempt from transfer fees:
- under a qualifying reorganisation
- under a qualifying loan Restructuring (note 10)
- in the context of bankruptcy, liquidation, disposal of mortgaged immovable property by the lender, where the sales proceeds do not exceed the amount of €350.000 per owner
- Transfers that are subject to VAT
