Purchase Costs

1. Real Estate Transfer Tax

This is paid by the buyer. From 1.1.2014 it has risen up to 3% of the total price of the property which is stated in the contract or 3% of the fair/objective value if the latter is higher.

Under certain circumstances, a first residence exemption is stipulated by the law.

 

2. Notary’s payment

The notary’s payment is determined depending on the fair value of the property if this is higher than the price or depending on the latter in any other case. It is usually about 1.2% of the total price/ fair value but beyond this(if the total price is higher) the amount gradually decreases.

The notary’s expenses are usually paid by the buyer. That is why the buyer usually chooses the notary that he prefers to draft the agreement. Of course, it is possible that both sides agree on something different.

3. Land Registry Costs

The transfer costs in the land registry office are about 0,475% in addition to some other expenses of the fair value or the total price( depending on which is higher)

4. Lawyer’s payment

From 1.1.2014 none of the people involved in a property deal, buyer or seller, must be accompanied by a lawyer when they sign the contract. However, hiring a lawyer is really important and necessary especially for the buyer( check in the land registry, check the terms of the contract, ensure that everything is legally valid etc.)