Entitlement to transfer tax rate deduction possible for residences acquired before June 15, 2011

On July 1, 2011 the transfer tax which is liable with the purchase of a home, was lowered from 6 to 2%. With this decision it was agreed that this rate of 2% may also be applied to properties purchased after June 15, 2011. This would mean that a purchase from before this date is not eligible for a rate reduction.

It can also be argued that this rate reduction should also apply to homes purchased before June 15, 2011 and whose transfer tax was not yet finalised by June 15.

On this point the decision is contrary to the law, in specific the prohibition of discrimination, by not allowing the tariff reduction to apply to those whose transfer tax has not been fully finalised by June 15. This situation includes homes which are legally obtained in the six week period prior to June 15. Given the relevant objection period (six weeks) quick action is required so as not to lose any entitlement you may or may not have. Objections on these grounds have already been filed. We expect the requisite impact from these procedures. So do not lose any entitlement you may have and at least submit a formal objection, citing the above reasons, with a request to defer the submission of a more detailed justification until after the decisions on the previously submitted objections and appeals have been made.

For more information about this subject, please contact us using the form or call telephone number 020-3445900.

Another interesting element of the transfer tax
Besides the above elements, we see reports that the transfer itself tax is contrary to the right to property as declared in the Charter of Fundamental Rights of the European Union. This is undoubtedly going to be a long and exciting procedure. Please take note of the relevant objection and appeal deadlines here.