From November 1, 2016 on, the real property transfer tax is to be paid by the buyer
23. August 2016
An amendment to the statutory measure of the Senate regulating the real property transfer tax no. 254/2016 Coll., the subject matter of which is, above all, the delegation of the obligation to pay tax from the seller to the buyer, is to come into effect on November 1, 2016. The tax obligation of the buyer will be newly established by law and contracting parties’ will to transfer the tax obligation upon the seller will no longer be permitted. The applications filed before the measure comes into effect, i.e. by October 31, 2016, are subject to the existing regulation, which means that the tax is paid by the seller, while the contracting parties may still agree that the tax will be paid by the buyer. The date on which the application is filed with the land register is now decisive in order to determine who is to bear the real property transfer tax, as opposed to the date of execution of the contract under the precedent regulation.