Taxation of asset transfers

Transfers of real estate and securities are subject to asset transfer tax collected by the state. The recipient of the transfer, such as a party purchasing a residential building, is liable to pay asset transfer tax. Real estate and securities transferred as gifts, bequests or inheritance, or as the result of the dissolution of a joint ownership, are not subject to asset transfer tax. 

The level of tax

In a transfer of real estate, asset transfer tax equals 3% of the purchase price or the value of other contribution. 

In a transfer of securities, asset transfer tax equals 1.5% of the purchase price or the value of another contribution. Other contributions include payments made by the purchaser to a third party or obligations of performance that are a condition of the transfer agreement and benefit the seller.

In the transfer of shares in housing companies and other real estate companies, the tax equals 1.5% of the contribution. The contribution also includes the share-specific portion of the debt belonging to the company, meaning that the tax is paid on the selling price plus the portion of the debt. During construction or earlier, the contribution includes the share-specific portion of all of the debts belonging to the company at the time when the construction is finished, or the time of the transfer of ownership if it occurs before the construction is finished and the property is commissioned. 

With certain conditions, acquisition of quoted securities through the stock exchange or multilateral trading facilities is exempt from asset transfer tax.