Guarantee of the Buyer for the Fulfilment of the Duty of the Seller to Pay the Real Estate Transfer Tax

As we have already informed you, contracting parties which are concluding a purchase agreement or an exchange (barter) contract are entitled to stipulate that an acquirer of the ownership right (i.e. the purchaser) is the taxpayer of the real estate transfer tax. Otherwise it is the seller who is considered to be the taxpayer; in such case, the buyer guarantees for the fulfilment of the duty of the seller to pay the real estate transfer tax.

 If the seller fails to pay the tax, the Tax Administrator is entitled to ask the buyer to recover the tax debt under the conditions of provision of Sec. 171 Art. 3 of Act No. 340/2013 Coll., General Fiscal Code.  According to this provision, the Tax Administrator shall ask the buyer to reimburse the due tax only if the tax was not fully reimbursed by the seller although the Tax Administrator unsuccessfully tried to collect the tax from the seller. The buyer may be asked to pay the tax also if insolvency proceedings against the seller commenced.