Purchase of Properties with Title Deeds
Properties constructed with Title Deeds (certificate of ownership), carry less risk because the transfer of the title deeds of the property under the name of the purchase can be transferred immediately.
Usually this is the case when buying a resale. However, if the property is newly constructed, in most cases the seller or developer might not have a separate Title Deed for the property and the buyer may have to wait a few months for it to be issued. Until then, the ownership rights of the buyer are guaranteed by the registration of the Sales Contract at the Land Registry Office.
The procedure for transferring Title Deeds from the seller to the buyer can be complex and professional advice is often necessary. This is particularly the case in situations when it is not possible to to make the transfer of Title Deeds because the developer has used the land on which they were building as collateral for loans to fund construction and failed to repay mortgages on the land and/or to pay outstanding taxes. Or due to planning infringements that violate the various permits and permissions issued for a property’s construction and where the construction has encroached on land owned by a third party.
Property Taxes and Transfer Fees
Once the Land Registry Office stamps the Sales Contract, the property’s Title Deed is issued together with receipts confirming payment of property taxes. This includes: Immovable Property Tax, Capital Gains Tax, Sewerage Board Tax and local property taxes paid to the Community/Municipality.
At the time of the transfer the buyer is required to pay Property Transfer Fees. The fees are charged on the property’s market value at the date of purchase.
Up to €85,000 3%
€85,001 – €170,000 5%
Over €170,000 8%
For fixed purchase price between €5,001 – €17,000, the stamp duty is 0.15%. For any amount over €170,000 it is 0.2%. Any contract must be stamped within one month from signatures in order to be accepted for lodging to the Land Registry Office.Calculate tax