Experience has shown that real estate transactions bring major problems. Tax liability on real estate is easily determined — because all notarial deeds are sent to the Tax Administration.
Hidden tax obligations
A great deal of income is hidden here that you may not have known you had to pay tax on:
- Capital gains tax
- VAT (in certain situations)
- Other tax obligations related to the transaction
Recommendation — factor obligations in in advance
It is better to factor them in and pay obligations on time.
Risk of self-assessed tax: under the latest legal amendment — if the tax authority determines the obligations on its own — you may pay 80% tax on that income.
Planning a real estate transaction or have you just completed one? Contact Finance Plus for timely analysis of tax obligations.
