Handbook “Transfer of immovable property”
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Introduction
Gains derived from the transfer of immovable property are, as a rule, subject to income tax. Gains derived from the intermediation of immovable property and from the transfer or intermediation of real estate reservations are also taxed. Certain immovable property transactions are exempt from income tax.
Definitions
- Transfer is a transaction as a result of which the property changes owner, such as purchase and sale, gift, exchange, etc.
- An item of immovable property is a delimited area of land (plot of land). The integral parts of an item of immovable property are the items of property that are permanently attached to it such as construction works, standing wood, other vegetation and unharvested fruit. The integral parts of immovable property together with the land form a registered immovable.
- A movable is a thing that is not immovable.
Act
Last updated on 08.01.2025
Tax-exempt or taxable transaction
This table provides a quick overview of real estate transactions that are exempt from tax when certain conditions are met. For more information about the transaction you are interested in, please view the handbook.
| Object of the contract of purchase and sale | Basis for tax exemption in the Income Tax Act | To the subject of ownership reform / a privatiser with the right of pre-emption / the owner | To a successor | To a legatee (is not a successor) |
To a legatee (is a successor) |
By gift or other transfer transaction |
|---|---|---|---|---|---|---|
| Property returned in the course of the ownership reform | § 15 (4) 5) | sale is exempt from tax | the tax exemption is passed on | the tax exemption is not passed on, gains are taxed | the successor's tax exemption applies | the tax exemption is not passed on, gains are taxed |
| Immovable property obtained by restitution after being unlawfully expropriated and the essential part of which is a dwelling | § 15 (5) 2) | sale is exempt from tax |
the tax exemption is passed on |
the tax exemption is not passed on, gains are taxed | the successor's tax exemption applies | the tax exemption is not passed on, gains are taxed |
| Immovable property privatised with the right of pre-emption and the essential part of which is a dwelling |
The dwelling together with land belonging to it has been privatised with the right of pre-emption and the size of the registered immovable property does not exceed 2 hectares. |
sale is exempt from tax | the tax exemption is not passed on, gains are taxed | the tax exemption is not passed on, gains are taxed | gains are taxed | the tax exemption is not passed on, gains are taxed |
| Summer cottage or garden house |
According to the register of construction works or the land register, the summer cottage or garden house has been in the person’s ownership for more than two years and the size of the registered immovable does not exceed 0.25 hectares. |
sale is exempt from tax | the tax exemption is not passed on, gains are taxed | the tax exemption is not passed on; if the conditions are met, the sale is exempt from tax | the tax exemption is not passed on; if the conditions are met, the sale is exempt from tax | |
| Expropriation on the basis of the Acquisition of Immovables in Public Interest Act | § 15 (4) 3) | sale is exempt from tax |
This table provides a quick overview of real estate transactions that are taxable (including, under certain conditions or in the absence of the required condition, taxable).
| Object of the contract of purchase and sale | Basis for taxation | Calculation of gains |
|---|---|---|
| Garage | § 15 (1) |
the difference between the acquisition cost and the sales price of the sold property |
| Land (agricultural or forest land) | § 15 (1) |
the difference between the acquisition cost and the sales price of the sold property |
| Real estate |
is not the residence and/or has sold the residence in less than two years |
the difference between the acquisition cost and the sales price of the sold property |
| Immovable property privatised with the right of pre-emption and the essential part of which is a dwelling |
there is no dwelling and/or land belonging to it has not been privatised with a right of pre-emption and/or the size of the registered immovable exceeds 2 hectares |
the difference between the acquisition cost and the sales price of the sold property |
| Storage space |
selling in a separate transaction from dwelling |
the difference between the acquisition cost and the sales price of the sold property |
| Parking spot |
selling in a separate transaction from dwelling |
the difference between the acquisition cost and the sales price of the sold property |
| Summer cottage or garden house |
not entered in the register of construction works or the land register, the summer cottage or garden house and/or owned by a person for less than 2 years and/or the size of the registered immovable exceeds 0.25 hectares |
the difference between the acquisition cost and the sales price of the sold property |
Last updated: 25.02.2026
