Anyone who buys, sells, gives away, contributes or otherwise transfers a domestic property usually carries out a transaction subject to real estate transfer tax. The real estate transfer tax, which is a matter for the province, is between 3,5 % and 6,5 % of the agreed purchase price or the real estate value of the property. In certain cases and with targeted design, however, the real estate transfer tax can be saved. This makes the transfer correspondingly “cheaper” – and that for both sides.
First principle: When does real estate transfer tax apply?
Real estate transfer tax is, in principle, subject to all legal processes relating to a domestic – built or undeveloped – grade piece and establishing a right to transfer ownership. The legislator summarizes these so-called acquisition processes in § 1 GrEStG and mentions in particular the following facts:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.