Double taxation of building land abolished — transfer tax amendment
TLDR
- Amendment to the Real Estate Transfer Tax Law (Off. Gazette 33/2026), applies from 1 April 2026.
- Building land subject to VAT is excluded from the transfer-tax scope (Art. 6).
- Previously the exclusion covered only newly-built structures — now land as well.
- Progressive rates unchanged: 3% up to €150k, 5% from €150k to €500k, 6% above €500k.
- Linked to the February VAT Law amendments, which brought sales of building land with a construction permit into the VAT system.
The amendment to the Real Estate Transfer Tax Law, published in Official Gazette 33/2026 and applicable from 1 April 2026, broadened the exclusion in Article 6: acquiring newly-built structures AND building land on which VAT is charged does not count as a taxable real-estate transfer.
The amendment follows logically from the February VAT Law changes (Off. Gazette 012/26), which brought sales of building land with an issued construction permit into the VAT system. Without this correction, a buyer of such land would pay both 21% VAT and 3–6% transfer tax on the same transaction.
Practically for buyers: if you buy building land from a VAT payer and VAT is charged on the invoice, you do not additionally owe real-estate transfer tax. If you buy land without VAT (e.g. from a private individual), transfer tax applies as before.
The progressive transfer-tax rates remain unchanged: 3% up to €150,000, then €4,500 + 5% on the amount over €150,000, and €22,000 + 6% on the amount over €500,000.