Handbook “Transfer of immovable property”
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Declaration of income and payment of income tax
Taxable period
- Gains derived from the sale of property are taxed in the taxable period (calendar year) in which money is received from the sales transaction.
- Gains derived from the exchange of property are taxed in the taxable period in which the ownership is transferred according to the record of the land register.
Declaring income
Income from the transfer of property, intermediation of immovable property and transfer of immovable property reservations is declared in the income tax return of a resident natural person. The income tax return has to be submitted to the Tax and Customs Board no later than April 30 of the year following the year in which the gain was derived.
Payment of income tax
Income tax has to be paid to the bank account of the Tax and Customs Board no later than 1 October of the year of submission of the tax return.
Read more: Tax payment options
How to declare
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gains derived from transfer of property
Gains derived from the transfer of property are declared in the income tax return form A of a resident natural person.
If the seller of the property receives the money during several different taxable periods, the acquisition cost and the costs directly related to the sale are taken into account when calculating the gains of different periods according to the proportion of money received during that taxable period.
At the taxpayer’s request, it is also possible to take into account the acquisition cost and the costs related to the sale to the extent of the money received during the taxable period, i.e. the gains are taxed if the income received exceeds the acquisition cost and the costs related to the transfer.
If the transfer of property is a taxable transaction, but during the taxable period no gain is derived when taking account of the acquisition cost, such transaction must still be declared in order to take the acquisition cost into account.
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income received from intermediation of immovable property
Income from intermediation of immovable property is generally declared and taxed as business income of a natural person. If the intermediation of immovable property is the business of a natural person, the income received must be declared in the business income declaration form E. A sole proprietor entered in the commercial register can deduct business-related expenses from income. Both income and social tax must be paid on business income.
If the activity of intermediation of immovable property does not correspond to the characteristics of business activity, the income received is declared in the income tax return form A. Income tax is paid on the income, no social tax must be paid.
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income received from transfer or intermediation of real estate reservations
Income received from the transfer or intermediation of real estate reservations is taxed:
- as business income (declared on form E) or
- gains from transfer of property (declared on form A) or
- as other income (declared on form A).
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