Transfer Tax Deadline Extended
Resale of real estate
Whenever a property is purchased transfer tax is payable. Upon resale of the property the new buyer will again need to pay transfer tax over the full purchase price. For resales within six months of the previous acquisition, transfer tax is only payable over the added value.
Extending period to 36 months
It has been noted that in the current stagnant real estate market a resale period of six months is generally too short. The Minister of Finance has announced that in the 2013 Tax Plan an amendment will be proposed which extends the current six month period to 36 months.
Effective September 1
In anticipation of this amendment a resolution has been published which states that the extension will be effective from September 1 2012. A condition for applying the new deadline is that the party which sells the property has obtained the property on or after September 1 2012. For acquisitions which have taken place before this date, the six month period applies.
The resolution applies for residential and non-residential properties.