pruh+znak_PF_13_gray5+fialovy_RGB PF_PPT_en Tax on Property Transfers Michal Radvan www.law.muni.cz PF_PPT_nahled PF_PPT_en2 2 Property Transfer Taxes n nVAT (NETH, SPA – rules to avoid double taxation) nStamp duties nInheritance tax nGift tax nIncome taxes nProperty-value increasement taxes n nPROPERTY TRANSFER TAXES www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Advantages nProperty is immovable - fixed in location nIt is impossible to hide the property nThere is always a value of the property nProperty is registered nTransfers are public and registered nTaxpayers are easily identifiable nIs the property transfer registered before or after the payment? nEasy to administer, low administration cost n n 3 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Disadvantages nSecond tax (income tax, annual property tax, VAT) nUnfair tax: the decision of Czech Constitutional Court argued that this is a politicum nBenefits for taxpayer??? – Registration and protection of rights nOther legal acts not to tax property transfers nUndervaluation of property nDeformed market 4 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Movable property transfer tax nEasy to avoid taxation nWhat is to be taxed? nWhat is the value? n 5 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Types of property transfer taxes in EU nTransfer tax: AUS, CRO, GER, FIN, GRE, HUN, NETH, POL, PORT, SLO nRegistration tax: BEL, FRA, ITA, LUX nAcquisition tax: BUL, CZE nCapital Tax: CYP (capital gains), SPA (capital transfers) nStamp duty: GB (land tax), IRL, SWE nTax on sale: DEN nDuty: LAT (for consolidation of ownership), MAL (property transfers) nNo transfer taxation: EST, LIT, ROM, SVK n nSource: Taxes in EU Database 6 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Taxpyers nBuyer: BEL, BUL, CRO, FIN, FRA, GRE, IRL, LAT, LUX, MALT, NETH, POL, PORT, SPA, SWE, GB nSeller: DEN, CYP, CZE, SLO nBoth: AUT, GER, ITA nContract?: BUL, CZE, GER nSurety?: BUL (in case of contract buyer), CZE (byuer) 7 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Object of taxation nTransfer / Acquisition of the property nTransfer of the title to property nSale by pubic auction 8 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax base nContract price: AUS, BEL, DEN, GB, GER, IRL, LAT, MAL, SLO, SPA, SWE nPrice vs. Market value: FIN, FRA, GRE, NETH nPrice vs. Taxable value: PORT nAssessed value: BUL nMarket value: CRO, ITA, LUX, POL nRe-evaluation of the cadastral income: ITA for houses purchased by private persons nNet profit: disposal proceeds less the greater of the cost or market value as at 1st Jan. 1980 as adjusted for inflation: CYP nCosts are often deductible from the tax base 9 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax base II nRe-evaluation of the cadastral income: ITA for houses purchased by private persons nNet profit: disposal proceeds less the greater of the cost or market value as at 1st Jan. 1980 as adjusted for inflation: CYP nCosts are often deductible from the tax base n 10 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax base set by nCentral authority nBEL(central and regional authority) n 11 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax rate nPORT: 0-8 % progressive, depend on type of the property and location nBUL: 0,1-3 % nIRL: 1-2 %, GB 1-15 % progressive nSWE: 1,5 % for natural persons, 4,25 % for legal persons nPOL, SLO: 2 % nLAT: 2-6 % depends on type of the property, discounts for relatives nGRE, ITA: 3 % nMAL: 3-5 % degressive 12 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax Rate II nAUT, GER: 3,5 % (2 % for relatives in AUS; decision of lands in GER) nFRA: 3,8 – 4,5 depends on departments + 1,2 % additional local tax nCZE, FIN: 4 % nCRO: 5 % nBEL: 5-12,5 % depends on region nLUC, NETH: 6 % (2% for dwellings in NETH) nSPA: 6-7 % depends on location nCYP: 20 % nDEN: taxed by income taxes n 13 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax rate set by nCentral authority nBEL, SPA, PORT (central and regional authority) nGER – regional authority nBUL – local authority nFRA – central, regional and local authority 14 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Correction components nFor relatives nPublic institutions, charities, public benefit associations, churches, Red Cross, etc. nProtection of environment nLow value, especially used as permanent residence nIn the act, sometimes depend on local or regional authorities 15 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax reliefs set by nCentral authority nBEL, SPA (central and regional authority) nFRA, PORT (central, regional and local authority) n 16 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Tax administrator nState tax offices nRegion: FRA, GER nLocal authority: BUL, SPA nProfessional intermediaries like notaries: BEL nLand register: LAT n 17 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Beneficiary nCentral authority - generally nRegional authority – GER, SPA nLocal authority – BUL, FRA, SLO, POL, PORT nShared – BEL, ITA (central and regional), AUS, CRO, GRE (central and local) 18 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 Conclusion nSelf-application nEasy to calculate, especially the tax base 19 www.law.muni.cz PF_PPT_nahled PF_PPT_en2 nThank you for your attention