Real estate acquisition tax is also known in the past as real estate transfer tax. The buyer pays the real estate acquisition tax. The tax rate is 4% of the tax base based on either the purchase price or the comparative tax value.
Calculation of the purchase price tax: The buyer will pay to the tax office 4% of the purchase price. This amount technically serves as a deposit to the tax office. The tax office will verify that the purchase price is real and that it is not a fake purchase price for the purpose of tax evasion. The tax office has up to 3 years to assess the tax, but in practice it is significantly faster.
Calculation of the tax on the basis of a real estate appraisal: If the real estate official appraisal has been prepared for the property, the comparative tax value is determined from the observed price. The comparative tax value is 75% of the observed price. If the comparative tax value is higher than the purchase price, then the comparative tax value is paid.
What needs to be done:
- File a tax return – Filed by the broker within the commission.
- Submit Transfer Contracts – Provide by broker within the commission.
- Submit proof of notification from the Land Register of the permission of the deposit – Provide by broker within the commission.
- Submit an official appraisal, if used for tax calculation. – Not included in commission.
- Submit the tax return to the local tax office within 3 months of the entry in the Land Register – Arranged by broker under commission.