CAPITAL GAINS ARISING FROM THE SALE OF BUILDINGS
Capital gains resulting from the sale of property constitute taxable income. This income is deemed as accrued when the property is transferred.
In general, the amount of the capital gains is determined by the difference between the cost price and transfer value of the property.
The cost price is of the actual cost price of the asset involved, plus all ensuing costs and taxes, excluding interest, paid by the transferor.
The transfer value is the real amount for which the disposal was made, reduced by the amount of any costs or taxes related to the transfer paid by the seller.
As a result, the capital gain on which taxation will be paid consists of the difference between the transfer value and the cost price, determined as described above. The Tax rate based on this difference is 18%.
If the seller is non-resident, the person who acquires the building, whether resident or non-resident, is obliged to withhold and deposit with the Public Treasury 3% of the consideration agreed. For the seller this amount constitutes a payment on account for the tax on the income arising from the transfer.
Refund of excess withholding. In the event of capital gains loss, or when the withholdings are greater than the total amount of tax payable, you will have the right to receive a refund for the excess withholdings.