Transfer of immovable property

When selling or exchanging land, house or apartment, the question arises – whether income tax is payable on the gains received. If so, how and when to declare the gains and how the tax amount is calculated. You can find answers to these questions in the following guide.

Handbook “Transfer of immovable property”

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    Transfer of a summer cottage or garden house

    Income tax is not charged on the income derived from the transfer of a summer cottage or garden house if the following conditions are met:

    1. the summer cottage or the garden house has been in the taxpayer’s ownership as a movable or an essential part of an immovable for more than two years;
    2. the size of the registered immovable does not exceed 0.25 hectares (i.e. 2,500 m2), and
    3. according to the land register entry, this is a summer cottage or garden house.

    If the summer cottage or garden house has been acquired by a leasing contract, the beginning date of the ownership is the date on which the leasing contract was concluded.

    Example 1

    A person bought a garden house for 15,000 euros. 10 years later, only the foundation remained of the garden house. She decided to sell the empty plot and sold it for 30,000 euros. Since at the time of sale an essential part of the immovable, i.e. the garden house, no longer existed and it is not a sale transaction of a garden house but of land, this transaction is not exempt from tax. Although the accuracy of the land register data is assumed, factual circumstances must also be taken into account.

    Transfer of a summer cottage or garden house if...

    ...the summer cottage or garden house is inherited

    The successor can only sell the inherited cottage or garden house exempt from tax if the following conditions are met: the summer cottage or garden house has been in the successor’s ownership as a movable or an essential part of an immovable for more than two years, the size of the registered immovable does not exceed 0.25 hectares (i.e. 2,500 m2) and according to the land register entry, this is a summer cottage or garden house.

    If at least one of the conditions is not met, the sale of a cottage or garden house must be declared and income tax must be paid on the gains received. Only the costs incurred by the successor are the acquisition costs of the property, which may be deducted from the taxable gains (subsection 11 of § 38 of the Income Tax Act), for example, monetary compensation paid by a successor to the other successors from personal funds (rather than out of the estate) under a notarial agreement on division of an estate.

    ...the summer cottage or garden house is received as a gift

    The recipient of the gift can only sell the cottage or garden house received as a gift exempt from tax if the following conditions are met: the summer cottage or garden house has been in the person’s ownership as a movable or an essential part of an immovable for more than two years, the size of the registered immovable does not exceed 0.25 hectares (i.e. 2,500 m2) and according to the land register entry, this is a summer cottage or garden house.

    Example 2

    In 2023, grandmother gave her granddaughter a summer cottage with the land belonging to it as a gift. In 2024, the granddaughter sold the cottage. Since the cottage was owned by the granddaughter for only one year, she must pay income tax on the gains received.

    The acquisition cost and the recipient's documented expenses can be deducted from the income.

    Last updated on 26.08.2026

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    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

    § 15 (5) 3)

    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

    § 15 (5) 4)

    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)

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    Land (agricultural or forest land) § 15 (1)

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    Real estate

    § 15 (1)

    is not the residence and/or has sold the residence in less than two years

    § 37 (1)

    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

    § 15 (1)

    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

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    Storage space

    § 15 (1)

    selling in a separate transaction from dwelling

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    Parking spot

    § 15 (1)

    selling in a separate transaction from dwelling

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    Summer cottage or garden house

    § 15 (1)

    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

    § 37 (1)

    the difference between the acquisition cost and the sales price of the sold property
    private client

    Last updated: 25.02.2026

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