Abolition of real estate transfer tax

On 27 May 2020, the Chamber of Deputies approved in the first reading the abolition of real estate transfer tax of 4 per cent with retroactive effect. According to the current wording of the bill, the real transfer tax would be abolished starting from December 2019 if the bill is approved.

Together with the abolition of the real transfer tax, the bill also includes an extension of the time test for exemption regarding the sale of real estate from personal income tax from five to ten years. This applies to real estate where the owner does not intend to live there. The test will be applied to real estate acquired after 1 January 2021. The bill also cancels the application of paid interest as an item deductible from the tax base. This will apply to mortgage agreements concluded after 1 January 2022.