Capital gains tax on the sale of property.

When selling real estate, people are often faced with an unexpected tax that must be paid. We are asked questions in which cases the tax should not be paid. Taking into account the interest of customers, we update this topic and answer questions. There are several cases when the tax is not payable when selling real estate.

• It is not payable if the immovable property has been registered in the land register for at least 60 months before being sold, and has been the declared residence for at least 12 months up to the date of sale (regardless of whether it was the first or last 12 months);
• In the event that the property is the only property from the moment of its registration in the land register and has been registered in the land register for more than 60 months.
• The tax is also not applied if it is the only real estate, the income from which is invested in an equivalent real estate 12 months before or after the sale of your property.
• Attention should be paid to property received as an inheritance/inherited. If the property is inherited from a natural person who is related by marriage or kinship up to the third degree within the meaning of the Civil Law, it is considered that the real estate is owned by the heir from the day when the relevant real estate is registered in the land register as the property of the bequeather. In such a situation, it is important to pay attention to the fact that the inherited property has already been registered in the land register. The tax is applied from the moment the property is registered in the land register, not from the moment it is received as an inheritance.

It often happens that people buy property and for various reasons (for example, to avoid paying real estate tax, state fees) hesitate to register it in the land register. If the property has to be sold, the reference point will be the entry in the land register, not the date of the purchase agreement. That is why it is very important to register the real estate in the land register in time, so that the mentioned condition for the 60-month period is fulfilled and personal income tax is not payable on the income from the sale of real estate. Declaring ownership can be an important factor in selling a property. It is very important to declare after purchasing the property to avoid unpleasant surprises when the property is sold. We recommend consulting and obtaining more detailed information from our real estate agents , who will respond responsively to your questions.