Clever Investment

Taxes on the purchase of real estate

The following fees and taxes are payable upon purchase of the property:

1. Value Added Tax. It is 5% of the value of the object under the contract. Depending on the property, VAT may be payable before the keys are received (specified in the purchase agreement) or on title deeds (if VAT payment is not specified in the purchase agreement).

2. Stamp Duty. It amounts to 0.5% of the value of the property stated in the contract. The fee is payable to the Internal Revenue Service within 21 days of the date the contract is signed. Only after paying the stamp duty can you register the property in your name in the public registry. It is important to remember that registration at the land registry must also be done within 21 days from the date of signing the contract.

3- Title transfer tax is currently 12% of the value of the property. Payable in two installments. The first 6% is paid when the purchase agreement is registered with the Land Registry. The second portion (the remaining 6%) is paid when the owner decides to transfer the title assigned to his apartment into his own name. This can be done after the builder has completed the project and allocated separate titles to each property in the project.

In addition to the taxes that must be paid when buying and registering the property in his name, the buyer also pays a transformer municipal fee for the connection of utilities, which is 2000 – 3000 pounds. The cost depends on the type of housing and what utilities are connected to the property (water, electricity). The fee is payable to the builder prior to handing over the keys.

When buying a ready-made property on the secondary market, VAT and transformer fees do not need to be paid, as these fees have already been paid by the previous owner.

Clients of CLEVER INVESTMENT receive full support in the issues of payment of taxes related to the purchase of real estate and registration of real estate in the state register.

Stay tuned! CLEVER INVESTMENT is a name you can trust!

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