The seller in a contract of assignment – do the following
If you bought a new flat or apartment during the construction stage and proceed to resell it to a third-party buyer before the date when its ownership is transferred to you, the sale usually goes ahead under a contract of assignment. You must file and pay transfer tax on the original purchase price.
File the return
File a transfer tax return before 2 months have elapsed from the day when you signed the transfer agreement. Do this even if a realtor assists you with this contract.
If you transfer the property together with someone else – typically your spouse – both of you must submit a transfer tax return.
- For the transaction date, enter the date when you purchased the shares (date when the purchase agreement was signed).
- In the section for property details, you see the question whether the property you acquired is newly built. Check “Yes” in order to ensure that the due date for your transfer tax is correct. For the date of transfer of ownership, enter the date when the transfer contract was signed. The due date is 2 months from the date when the contract was signed.
- For the transaction price, fill in the part you paid of the original purchase price displayed in the sale and purchase agreement made at the construction stage. Do not report the housing-company loan at all because in this case, no transfer tax is payable on it.
- However, you generally do not have to add very many enclosures. In MyTax, a window will appear that tells you whether an additional enclosure must be attached or whether it is enough if you just complete the tax return.
How to file a transfer tax return in MyTax
The paper-printed form can be used by individual taxpayers, general partnerships and limited partnerships. Enclose the following documents with the signed return form on paper:
- A photocopy of the sale-and-purchase agreement signed during the construction stage
- A photocopy of the signed contract of assignment
Pay the tax
Pay the tax in 2 months from the date when you sign the contract of assignment with your buyer. Do this even if a realtor assists you with this contract.
You must pay the transfer tax now, even if you were a first-time homebuyer. You may be entitled to the exemption for first-time homebuyers at a later date, provided that you buy a home and the conditions for the exemption are met.
- If you use MyTax to send the payment, reference numbers and other bank details are automatically transferred to the template for processing by your e-banking service. MyTax calculates the amount of transfer tax.
- If you pay via your personal e-bank instead, you need the bank account number for the Tax Administration and the bank reference number for transfer tax. To get the bank account and reference numbers, you can:
- Check them in MyTax: Click the Your tax types tab on the home page. Go to Payment status and click Paying taxes. You can find the reference number in the Transfer tax section under Other payment methods. You can find the Tax Administration bank account numbers at the end of the page.
- Call the service telephone number +35829 497 026 (Payment transactions, limited service available in English, standard call rates)
The amount of tax to pay must have 2 decimal points. After you have made the necessary calculations to arrive at the right tax, round it out to the nearest cent as usual. Example: your calculation result is €345.67890. You must round out the result in order to pay €345,68 as your tax.
If you transfer the property together with other people – typically your spouse, but there may be others – each one of you must pay their transfer taxes separately and enter their reference numbers for transfer tax when making the payments. The amount will be displayed as a paid tax in MyTax on the following business day or the day after that.
You receive a certificate of transfer tax
You will receive a certificate on filed and paid transfer tax in MyTax or by post. Normally, after you have filed and paid, the certificate will appear in MyTax in 2 days. Finding the certificate in MyTax.
If you file your return on paper, wait for the certificate of transfer tax to become available in MyTax a little later.
Amount of transfer tax – the seller in a contract on assignment
The tax is 2% of the original sales price. The transferor does not pay the transfer tax on the housing-company debt.
You can use the transfer tax calculator to help with your calculations.
Frequently asked questions
Transfer of ownership is specified in the sale and purchase agreement. In the case of new property (as defined by law), ownership is transferred when the building has been completed and you have paid the price in full.