A private individual who sells a property more than two years after buying it, or a property they lived in, as a rule pays no income tax on the sale.
The sale is tax-exempt if
- more than two years have passed since the purchase (date of the purchase contract);
- you or your dependent close family members lived in the property;
- the property is transferred between spouses, first-degree relatives or in connection with a divorce;
- the property was inherited.
Tax is payable in other cases, for example when you sell an apartment you did not live in before two years have passed since the purchase. The tax base is the difference between the sale price and the purchase price adjusted for inflation, and the Tax Administration assesses the tax at a rate of 24%.
The buyer pays the 3% transfer tax – the seller does not.
VAT-registered sellers (e.g. developers of new builds) charge 25% VAT on sales of new buildings and building land.
For more complex cases (several properties, selling a share, inheritance) we recommend consulting a tax adviser before signing the preliminary contract.