The story of real estate transactions does not end after you have notarized the Purchase Agreement, acquired ownership and land rights over the property, and taken the key to your new home in your hands.

Although the transaction process is completed, and although the Public Notary has automatically sent a request to the cadastre to register you as the new owner, there are still several obligations that await you as the buyer of the property.

1. DOCUMENTATION FOR EXEMPTION FROM THE TAX ON THE TRANSFER OF ABSOLUTE RIGHTS OR VAT REFUND

If you have just purchased your first property from another individual, it is necessary to submit all required documentation to the relevant branch of the tax administration based on which you will be exempt from paying the tax on the transfer of absolute rights. This tax is legally the seller’s obligation, but it is defined by the Agreement as the buyer’s obligation.

As a buyer of the first property from an investor who is in the VAT calculation system, it is necessary to collect and submit complete documentation for the VAT refund amounting to 10% which is calculated on 40m2 for the buyer and on 15m2 for each close family member who is not the owner of the property since July 2006.

2. PAYMENT OF THE TAX ON THE TRANSFER OF ABSOLUTE RIGHTS

A buyer who is not purchasing their first property, and the seller is an individual, is obligated to pay the tax on the transfer of absolute rights in the amount of 2.5% which is calculated on the market value of the property.

After signing the Agreement, the Public Notary forwards the PPI-4 form to the tax administration branch, and the tax administration calculates the amount of tax that the buyer assumes as their obligation under the Agreement.

After the calculation of the tax on the transfer of absolute rights, the decision is delivered to both contracting parties, and it is necessary for the buyer to make the payment to the appropriate current account within 15 days.

3. TRANSFERRING ACCOUNTS TO THE NEW OWNER OF THE PROPERTY

In order for you to receive future bills for monthly expenses such as electricity, water, building maintenance, heating, and PWW in your name, it is necessary to submit documentation to all services and transfer the accounts to your name after settling the outstanding obligations of the previous owner (the seller’s obligations).

The agency “Heroldo Real Estate” takes over obligations for its clients after the purchase/sale of real estate and fully facilitates the real estate transaction process.