Selling a Property or Flat and Taxes

Income tax exemption on the sale of property

The sale of a property or flat is exempt from income tax if it takes place more than 5 years after the property was acquired. The date of acquisition is primarily taken to be the date of entry in the Land Register, but you should always also check whether the contract contains any conditions precedent relating to payment of the purchase price, or other circumstances that would defer the acquisition to a later date.

The five-year period starts from the latest possible point – entry in the Land Register, payment of all or part of the purchase price, signature of an addendum to the contract and so on – and ends at the earliest possible point, whether that is signature of a reservation agreement, payment of a deposit, signature of the contract, payment of the purchase price or entry in the Land Register. In other words, the start and end of the period are taken as the two points least favourable to the taxpayer: the period required for the exemption starts as late as possible and ends as early as possible.

If you wish to save time and money when preparing property transfer contracts or dealing with tax questions related to property sales, it is best to contact lawyers or property specialists, such as the law firm www.navratlaw.com and the estate agency www.realtuls.sk