Real estate transfer tax

17.09.2019

The Supreme Administrative Court stated in its decision No. 3 Afs 106/2017-90 dated 30 May 2019 that the real estate transfer tax consists of the value of the transferred real estate and the financial profit from the sale of the real estate transferred by the transferor. The Court also mentioned that the statutory VAT on the purchase price of the real estate cannot be considered as part of the transferor’s profit. According to these statements, the Supreme Administrative Court decided that the inclusion of VAT into the tax base of the acquired property would not correspond to the purpose of the real estate transfer tax.