There are 3 main taxes involved in any property sale transaction (different taxes apply to gifts of property). These taxes are:

– The transfer fee which is payable to Land Registry Office

– The capital gains tax which is payable to the Tax Office

– The VAT which is payable to the Vendor

The Capital Gains is usually payable by the vendor and the transfer fee is usually payable by the purchaser (although this can be varied by the parties in the Contract of Sale). VAT, however, is subject to the terms of the Contract of Sale agreed between the parties (i.e. whether or not the sale price includes or excludes VAT).

The amount of tax levied depends on whether or not the vendor is a ‘professional vendor’ (i.e. whether the transaction is of a commercial nature or for profit). The table below indicates the percentages levied accordingly. The percentages for all three types of tax are percentages of assessed value of the property which is carried out just before transfer of title takes place. The valuation assesses the property in the state it is in at the date of the valuation i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property.

Transfer Fee
The transfer fee payable is 6% upon Land Registry’s valuation of the property purchased.