The largest item of expenditure when buying is stamp duty (stamp duty – more about the tax on the state website in English), which is calculated depending on the cost and can reach 15%.
For individuals, stamp duty is levied on transactions whose amount exceeds €146,615 (for residential real estate) and €175,939 (for commercial real estate and land plots). Stamp duty both residents and non-residents of the country pay once at the time of the transaction.
Previously, all property was subject to stamp duty at a single rate, but since December 4, 2014, the tax is calculated on a progressive scale: its amount depends on the difference between the value of the property and the established rate threshold.
Stamp duty rates for individuals in the UK (residential real estate), according to the official website of the UK government, are:
- 0% from the first €146,615 (hereinafter translated at the exchange rate on 06.08.2021) of the value of the property;
- 2% from the following €146,615;
- 5% from the following €791,726;
- 10% off the following €674,433;
- 12% of the remaining part of the cost (more than €1.7 million).
So, when buying a property worth €346,013, the stamp duty will be €5,571:
- €0 from the first €146,615;
- €2,932 from the following €146,615;
- €2,639 with the remaining €52,781.
For legal entities in real estate transactions with a value of more than €586,463, stamp duty is charged at a rate of 15%.