What taxes does one need to pay when selling a property?
TAXES AND REAL ESTATE
Real estate transfer tax – DPN
The seller must file a form called "Real estate transfer tax return" with the tax office in the territory of which the real property is located within 15 days of the conclusion of the agreement.
For every successful transaction of real estate the seller is obliged to pay a 2% tax of the tax base (selling price). The taxation becomes obligatory when the contract is signed.
You sell the property for 200.000,00 EUR, the tax (DPN) is 2% of the value. When selling you will have to pay 4.000,00 EUR of sales tax.
200.000,00 x 0,02 = 4.000,00 EUR
Capital gains tax (change in the year 2022!)
The tax base is calculated as a difference between the selling price and acquisition value (inheritance, buying...). The tax rate on which the difference (tax base) is taxed, is different depending on the years of ownership:
Up to 5 years - 25%
From 5 to 10 years - 20%
From 10 to 15 years - 15%
After 15 years - 0%
You can see that after 15 years of ownership there is no tax on capital gains, as well as if the owner (seller) has his permanent residence and lives in the property for at least 3 years.
You bought a house for 100.000,00 EUR in the year 2019, and sold it for 150.000,00 EUR in the year 2022. With selling the property you earned 50.000,00 EUR on which you will have to pay capital gains tax. Because you acquired the house in the year 2019, you own it now for 3 years (that is less than 5 years), which means the tax rate will be 25% or 12.500,00 EUR.
The tax is calculated simply:
150.000,00 (price for which you sold the property) - 100.000,00 (purchase price of the house) = 50.000,00 (tax base)
The tax base is then reduced for the sales tax 2% DNP, and 1% of normalised expenses - but for the purpose of explaining the concept we will leave it simplified.
50.000,00 EUR (tax base) x 0,25 (tax rate) = 12.500,00 EUR
150.000,00 (odsvojitev oz. prodaja) - 100.000,00 (pridobitev oz. nakup) = 50.000,00 (osnova)
Our real estate agency Makler Bled d.o.o. always helps our clients in doing the tax obligations correctly and optimally - in order that all transactions made through us are correct and therefore keep our clients happy and satisfied with our service.