You may have often heard real estate agents ask how long the property has been in your ownership and at what price you purchased it. No, this is not curiosity or unprofessionalism! The agent will ask you this question to inform you in a timely and detailed manner about any financial obligations you, as the seller, may have – regarding the so-called CAPITAL GAIN.

The capital gains tax is a percentage-based monetary amount that represents the seller’s obligation, but it is not always calculated.

Only property owners who have ownership rights and possession for a period shorter than 10 years can expect, potentially, costs upon selling it. But even that is not always the case, as there are always exceptions.

For example, if you have owned the property for less than 10 years, purchased it for 20,000 euros, and sell it for the same amount or lower, capital gains will not be calculated for you. Or, for example, you bought it for 20,000 euros, have receipts for its adaptation and renovation (external insulation, internal works – tiles, internal insulation, PVC joinery, etc.) and submit them after completing the transaction at a higher price, then capital gains and tax will not be calculated if the sale price is lower than your total calculated price – sale price + costs.

On the other hand, if after calculating your investment costs, the sale price is higher, so that there is a CAPITAL GAIN, the capital gains tax will be calculated on the difference. For example, you bought an apartment for 25,000 euros, invested another 3,000 euros (of course, you have the costs to prove it), and sell it for 30,000. In this hypothetical example, on the difference between 30,000 euros and a total of 28,000 euros, you have a capital gain of 2,000 euros and an obligation to pay capital gains tax, which is 15% of 2,000 euros, totaling 300 euros.

Capital gains are calculated as the difference between the seller’s purchase price of the property and the sale price at which the same property is sold, and the capital gains tax is calculated at a rate of 15% on the calculated capital gain. HOWEVER…

The law stipulates that owners who acquired the property through inheritance in the first line of inheritance, transfer from a spouse, or gift agreement are not subject to capital gains tax.

If you use the money received from the sale of the property to purchase another property within 90 days to resolve your housing issue, capital gains and capital gains tax WILL NOT BE CALCULATED OR CHARGED. Otherwise, in the case of purchasing a new property within 12 months, the seller has the right to submit a request for a refund of the paid tax obligation for the realized capital gain.