According to the Republic Department of Public Revenue – the tax office municipality where the property is located, the sales tax (absolute rights transfer tax) is 2,5% of the estimated real-estate value. The Seller is obliged to pay this tax. However, it is a common, recurrent practice for a Buyer to pay it on behalf of a Seller, in order for a Buyer to obtain absolute protection that the tax shall be paid.
Documents needed for submitting a request for paying the sales tax – absolute rights transfer:
1. PP form;
2. A photocopy of the Purchase contract verified at court;
3. An original of the above mentioned Contract (for inspection);
4. A photocopy of former property ownership (a contract which shows that property is acquired – usually a repurchase contract, construction contract or a court decision on inheritance…);
5. A photocopy of Seller’s ID card.