Transactions of transfer of property exempt from tax

Although, as a rule, gain from transfer of property is subject to taxation, there are still some exceptions when the transactions related to the transfer or acquisition of property are exempt from tax.

Exemption from income tax is applicable by the following transactions:

  1. transfer of a dwelling which was used as a place of residence until transfer;
  2. privatisation of an immovable with the right of pre-emption, where the dwelling is an essential part of it;
  3. transfer of property returned to an entitled subject in the course of ownership reform;
  4. ransfer of a summer cottage or garden house;
  5. acceptance of succession;
  6. receipt of property in the course of the ownership return;
  7. transfer of movable property in personal use;
  8. expropriation payments and compensations.

If a taxpayer transfers more than one place of residence in two years, tax exemption shall be applied to the first transfer only.