Incidental costs when buying a house at a glance - VON POLL REAL ESTATE

In simpler terms, buyers need to consider additional expenses alongside the property's purchase price. Here's an overview of the main extra costs:

Taxes

Upon acquiring an apartment/house, there are registration, mortgage, and cadastral taxes to contend with. Initially, two questions need clarification:

1. Is the seller an individual or a business entity?
2. Is the buyer availing themselves of the 'first house' concession?

Private person or entrepreneur

In the case of purchasing an apartment from a construction company during construction or within 5 years post-construction, typically, a 10% VAT on the purchase price and fixed registration, mortgage, and cadastral taxes of 200 euros each are applicable. If the apartment is bought from an individual or a company with VAT exemption, the buyer must cover a proportional 9% registration fee, along with fixed mortgage and cadastral taxes of 50 euros each. It's worth noting that the 'price-value system' allows taxation based on the cadastral value, irrespective of the purchase sum stated in the price. This system is applicable to sales subject to proportional registry tax (thus excluding VAT-liable sales) when the buyer is a natural person (not engaged in commercial, artistic, or professional activities). Consequently, it also applies to purchases of residential units (and corresponding parts) without 'first house' benefits.

First house' concession

Generally, this concession applies under these conditions:

1. The purchased building belongs to specific cadastral categories.
2. The building is in the municipality where the buyer resides or plans to move to (the change of residence must occur within 18 months from the purchase date).
3. The buyer meets certain prerequisites.

The taxes payable with 'first house' benefits are:

1. If the seller is an individual or a company with VAT exemption:
   • Proportional registry tax of 2%
   • Fixed mortgage tax of 50 euros
   • Fixed cadastral tax of 50 euros
2. If the seller is a company and the sale includes VAT:
   • Reduced VAT at 4%
   • Fixed registry tax of 200 euros
   • Fixed mortgage tax of 200 euros
   • Fixed cadastral tax of 200 euros.

Regardless of the case (purchase from a company or an individual), the registry, mortgage, and cadastral taxes must be paid by the notary upon file registration. The proportional registry tax should never be less than 1,000 euros.

Everything at a glance...


Notary and land registry costs

A notary is essential for a legally binding real estate purchase contract and to be registered as the owner in the land register. When buying a house or land, the purchase contract must be documented in writing by a notary. Costs vary based on the purchase price. House buyers are also responsible for the transfer of ownership in the land register. If the property is financed by a bank, requiring a mortgage to be recorded in the land register, these costs are also borne by the buyer.

Broker's commission

Buyers using an estate agent's services to facilitate their house purchase will incur a commission payable to the agent. There are no legally defined limits on the amount of commission an estate agent can charge a buyer.

We will be happy to advise you on all matters relating to the purchase of a property.