Keller Williams

Do I have to pay tax on the sale of an apartment

All property owners know about the need to pay property tax, land tax and changes in the accounting of buildings on suburban land plots. However, the question from property owners about whether to pay tax on the sale of an apartment arises quite often.

Among other taxes related to real estate, the current legislation provides for the tax that must be paid after the sale of the property, such as an apartment or apartment. The amount of income received as a result of the sale by the owner of the object is subject to taxation at the rate of income of individuals, i.e. 13%.

When you do not have to pay

The legislator provided such an opportunity by setting a minimum time period for the property to be owned by the seller.

If the property was obtained as a result of a sale, this period is 5 years. The same applies to the purchase of apartments in houses under construction (new buildings) and the purchase with mortgage funds. If the seller owns the apartment less than this period, then he needs to pay 13% of the income received.

For sellers who have received their rights to real estate by inheritance or as a result of donations made by close relatives, as well as under rental agreements, this period is only 3 years.

An exception in terms is not made for any categories of citizens, including pensioners, large families and disabled people of any groups.

The tax base

This concept is understood as the income from which the tax to be paid is calculated. As such, the amount of real estate valuation established by the parties in the contract of sale (DKP) of the apartment is taken. However, not all so simple. The legislator introduced the concept of cadastral value, which, as conceived, is as close as possible to market value.

Valuation of real estate in the property is compared with the cadastral value, and if it is lower, then the tax is calculated based on the amount of not less than 70% of the cadastre.