Do you plan to buy a flat in a family house? You can claim exemption from real estate acquisition tax

On 24 September 2019, the Chamber of Deputies approved the original version of the proposed amendments to the extension of exemption from real estate acquisition tax to the first paid acquisition of a unit (a flat) in a family house. Because of the amendment, those who buy a new flat in a family house, can calim exemption from real estate acquisition tax. So far, the exemption from real estate acquisition tax applies only to the first paid acquisition of the right of property to a completed or used unit in a residential house. The act will become effective the first day of the calendar month following the day it is published in the Collection of Laws.

The tax rate for real estate acquisition tax is 4 per cent, and the payer is the buyer (since 2016).

The purpose of the amendment is unification of the exemption of units in residential houses and family houses defined by building regulations. The Ministry of Finance clarifies that it is a reaction to the long-term tendencies to define units in family houses because of various construction obstructions and the limited building of residential houses.