Compare Listings

Real estate acquisition tax

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.