After you buy an apartment, the registration and payment of taxes are in order. One of the first things you need to do is file a tax return for the transfer of absolute rights. For customers of the first apartment, there is a tax exemption for exemption from this tax. Learn more about this in the text below that Michelle Johal brampton will provide you with.
Tax on the transfer of absolute rights relates to the transfer of property rights to the immovable property. The obligation to pay this tax is created on the day you enter into a contract of sale, and when it comes to building construction, this obligation arises on the day you receive the keys from your new apartment. The deadline for filing a tax return for tax assessment is 30 days, and the tax return comes within 15 days.
According to the law, the seller of the real estate is the one who pays the tax on the transfer of absolute rights. However, in practice, this load falls on the buyer. The seller in the sale agreement itself gives the consent of the buyer to submit a tax return on his behalf. Also, the consent also applies to the settlement of expenses on behalf of the seller.
The tax base of the tax on the transfer of absolute rights makes the price of the immovable property from the sales contract. If the agreed price is lower than the market soundness of the real estate, the tax authority can itself determine the tax base in the amount of the market price within 60 days from the filing of the tax return. The tax rate for the transfer of absolute rights is 2.5%.
Exemption from tax on the transfer of absolute rights
You have the right to be exempted from paying this tax on the territory of the country you live in until the date of the certification of the sale agreement. Also, it’s important that you did not have a real estate in your own neighborhood (for example, a part of your family home). If you buy the first apartment as a physical person, you do not pay a tax for the transfer of absolute rights for an area of up to 40sqm. For each family member, you have the right to exemption for another 15sqm. It is important to note that during the conclusion of the sales contract, you and your family must have the same residence.
If the area of the apartment exceeds 40sqm and 15sqm for each family member, you pay only the tax on the difference between the total area of the apartment and the area for which you have the right to be exempted. For example, you and your spouse are buying an apartment of 70sqm. As a buyer of the first apartment, you have the right to be exempt from paying for 40m², your partner for 15sqm, which means that you must pay a tax for the transfer of absolute rights for the remaining 15sqm.