The sale of a property represents a paid transfer of property rights on a property and thus the basis for the assessment of property transaction tax under the provisions of the Property Transaction Tax Act.

The transfer of property also includes the exchange of one property for another (exchange contract), acquisition of property rights based on acquisitive prescription, recognition of property rights as a result of building across the border or increase in the value of the property, transfer of property rights when dividing co-ownership (from the part that the individual co-owner got paid, for example, in a hereditary agreement on division and separation of the estate) etc.

Taxpayer

The taxpayer is the seller of the property. The buyer also has the position of a party in the procedure when he has assumed the obligation to pay the tax in the contract, but the taxpayer remains the seller!

The seller must submit a declaration for the assessment of property transaction tax within 15 days after concluding the contract at the tax office, in the area where the property is located.

The declaration must be accompanied by the sales contract and if the property is not yet registered in the land register, also evidence of the way this property was acquired (chain of sales contracts).

Tax Base and Tax Rate

The tax base is the selling price of the property, i.e., everything that represents the payment that the seller has received or will receive from the buyer for the property transaction. If the selling price does not correspond to the price that could be achieved in free trade at the time the tax liability arises, the tax base is the value of the property determined by the tax office in the tax assessment process.

If the taxpayer disagrees with the amount of the tax base determined in this way, they have the right to demand that the estimated individual market value of the property be considered as the tax base. In this case, the taxpayer bears the cost of valuing the property.

The tax rate is 2% of the tax base (if VAT was not calculated or paid in the sale).

Tax Exemptions

By law, no real estate transfer tax is payable on the transfer of properties:

• in the division of property between spouses and cohabiting partners upon termination or during marriage or cohabitation or registered same-sex partnership,
• in the dissolution of a contract for the transfer of property,
• in the transfer of property as in-kind contribution during the establishment or capital increase of a legal entity,
• in the division of property (real estate) among shareholders or stockholders in the process of company liquidation,
• in expropriations, etc.

 

Deadline for Tax Payment and Certificate of Tax Payment

The tax office determines the tax with a decision. The taxpayer must pay the determined tax within 30 days of the decision being served. You can also authorize a lawyer to submit a declaration for the determination of tax and to represent you in the tax assessment procedure.

After payment of the tax, the tax office certifies on the original copy of the contract that the tax has been determined and paid. Without a certificate of the paid real estate transfer tax, it is not possible to notarize signatures on the contract and to carry out the procedure of registering the property rights on the property in the land register.

If the contract is dissolved before the transfer to the new acquirer is made, or if the court declares it void with a decision, the taxpayer has the right to demand a refund of the paid tax.

For a consultation and a meeting regarding representation in the tax procedure, call lawyer Jurij Kutnjak during working hours on phone number 00 386/2/25-23-780 or write an e-mail to info@odvetnik-kutnjak.si.