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Real Estate Transfer Tax

Transfer Tax is governed by Act No. 357/1992 Coll., on heritage, gift and real estate transfer tax. You will find here the subject of the tax, until when and where to be paid.

Subject of the Tax

According to Art. 9 of the Act, subject of the Transfer Tax is payable transfer of the ownership of real estates; free-of-charge establishment of the encumbrance or any other similar instrument received as a gift. Even if the agreement is considered void, the transfer is subject to the tax. Mutual exchange of real estates are considered one transfer and tax is paid of the higher purchase price.

Tax payer

Tax payer is the transferor and buyer is a guarantor. In case of judicial decision, expropriation, bankruptcy, ofsett, usucaption or auction, tax is paid by the buyer. In case of mutual exchange of real estates, both owners are payers of the tax. Same applies to transfer of the real estate from or into the joint ownership of spouses. Each of sposes is payer of the equal part of the tax duty.

The tax base

The tax base of the transfer tax is price valid at the moment of payment. Should the price be the value higher than purchase price, base is the agreed purchase price, more information provides Art. 10 of the Act

Dividing people into groups I. až III.

U převodu nemovitostí se základem daně stává cena, která je platná v den nabytí nemovitosti. V případě, že se cena sjednala vyšší než cena zjištěná, pak je základem daně cena sjednaná. Celé znění naleznete v §10 zákona.

GROUPPERSONS BELONGING TO GROUPS
I.Direct relatives and spouses
II.Relatives in the indirect line (brothers and sisters, cousins, nieces, uncles, aunts); spouses of children (daughter-in-law, son-in-law), children of a spouse, parents of a spouse and persons who lived with decedent for a period of at least one year prior to decedent´s death and who were constributing to the common household or were dependent on the decedent.
III.Entities

The tax rate

All groups pay tax of 3 (three) percent of the tax base.

Tax Statement

Tax payer has to submit the tax statement from the transfer tax latest until 3 month from the registration of the buyer´s ownership in cadastral ofiice. On the same day also the tax has to be paid.