- Due diligence costs for the purchase of real estate
- Costs associated with a contract for purchase of real estate and registering title
- Tax or duty on the acquisition of shares in a company owning real estate
- Capital gain taxation on future disposal of real estate or shares in a company owning real estate
jurisdiction
1. Due diligence costs for the purchase of real estate
1.1 Municipal search
Cost
Issuance of the registry excerpts / copies of cadastral plans, maps and zoning information: administrative fee EUR 3 + charge EUR 30 / hour of work of competent authorities (if applicable) + material costs.
VAT
Nil
1.2 Utility search (each service)
Cost
Negotiable
VAT
Nil
1.3 Land registry search (per search)
VAT
Nil
1.4 Company search, per company
VAT
Nil
1.5 Survey/Valuation fee, approx
VAT
25%
1.6 Phase 1 Environmental survey
VAT
25%
2. Costs associated with a contract for purchase of real estate and registering title
2.1 VAT on price
Cost
RETT at 4% of market value of the real estate at the time of its acquisition (land plot value).
VAT
25%
2.2 Transfer duty
Land registry registration fees
Cost
Approx. EUR 35 (or approx. EUR 15 if the request is filed via notary public).
3. Tax or duty on the acquisition of shares in a company owning real estate
Generally, no RETT should apply on the transfer of shares in a real estate owning company. However, if based on the circumstances of the particular case, the Tax Authorities determine that the substance of the transaction is transfer of real estate, RETT may become due.
4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate
4.1 Tax on capital gains on the disposal of the real estate itself
Private persons: no taxation if the real estate is used for living or if ownership has been used for more than three years; however, if more than three transactions within a five-year period are made, the personal income tax applies (rate 24%) but only on the difference between the prices (selling price - acquisition price).
Companies: No separate capital gains tax, but proceeds treated as income, subject to corporate income tax, at 12% or 18% (depending on the amount of overall income).
4.2 Tax on capital gains on the disposal of shares in a company owning real estate
Commercial entities: no separate capital gains tax applies to shares/business quotas transfer. However, proceeds shall be treated as income and shall be subject to corporate profit tax of at 12% or 18% (depending on the amount of overall income). Capital gains are calculated as the difference between book value and sales price; adjustments to the book value are in some cases tax-free.
Private persons: transfer of shares / business quotas is subject to 12% capital gains tax if sold within two years from the date of the acquisition of shares; tax is paid on the difference between selling price and acquisition price.
