The expenses of the seller of a property according to the Civil Code and common practice.
- Personal Income Tax ( tax rate 15% )
- expenses connected to the conveyance, eg. payment of debts for public utilities
- expenses connected to the registration of the correct conditions in the Land Registry,eg. mortgage delition
When do you need to pay personal income tax?
The sale of a flat, a house or other type of property ( eg. building plot ) means an obligation for the seller on the base of the income realised form the sale. You are obliged to pay personal income tax after a flat or a house only if you purchased the property less than 5 years ago.
For other types of properties which were bought more than 5 years ago the income reduced with the expenses for the property must be diminished proportionately to the time of its purchase.
How much is the personal income tax to pay?
When you sell a property, the personal income tax rate to pay is 15%. However to judge the right sum as a base there are some rules to follow.
First of all from the price you get for the property ( flat, house or other type of property ) you have to deduce the following figures ( an official document is needed as a proof )
- the sum for which the seller bought the property
- the expenses connected to its purchase ( eg. dues paid )
- investments made to increase the value of the flat ( eg. refurbishment, enlargement, building a fence, etc… )
- expenses connected to the sale of the right for the property ( eg. price of advertisements )
You can not consider as expense to be deduced those expenses that the owner has already deduced as an expense earlier oppositely to his/her previous income in connection with one of his/her activities.
