Real Estate
Transfer Tax (RETT)
An international overview
17 countries at a glance
May 2023
Introduction
This publication covers the real estate transfer tax (RETT) regimes in 17 territories.
As there is no harmonization of the RETT regimes, the tax basis, rates and
exemptions are diverse and sometimes complicated. Please feel free to contact
one of our experts within PwC’s real estate tax network to answer any questions
you may have.
Jeroen Elink Schuurman Ilona McElroy
Global Real Estate Tax Leader EMEA Real Estate Tax Leader
2 | PwC | Real Estate Transfer Tax (RETT) 2023
Table of content
Examined jurisdictions 4
Facts & stats on RETT 5
Country-by-country summary 6
Austria 7
Belgium 8
Denmark 9
Finland 10
France 11
Germany 12
Ireland 13
Italy 14
Luxembourg 15
the Netherlands 16
Norway 18
Poland 19
Portugal 20
Spain 21
Sweden 22
Switzerland 23
United Kingdom 24
PwC contacts 26
Further information 27
3 | PwC | Real Estate Transfer Tax (RETT) 2023
POLAND
GERMANY
LUXEMBOURG
BELGIUM
DENMARK
SWEDENNORWAY
UNITED
KINGDOM
IRELAND
FINLAND
NETHERLANDS
FRANCE
ITA LY
AUSTRIA
SWITZERLAND
SPAIN
PORTUGAL
Warschau
Berlin
Stockholm
Oslo
London
Dublin
Helsinki
Amsterdam
Brussels
Paris
Rome
Bern
Madrid
Lisbon
Copenhagen
Vienna
Examined Jurisdictions
4 | PwC | Real Estate Transfer Tax (RETT) 2023
INTERACTIVE MAP
In six examined
jurisdictions, modified rules
may apply if the transaction
is subject to VAT.
In two jurisdictions,
the paid RETT may be
partially or fully recovered.
In certain jurisdictions,
additional charges (i.e., VAT
and/or stamp duty) related
to RETT may apply.
In three examined
jurisdictions, transactions
subject to VAT are not
taxed with RETT also.
In all examined jurisdictions
asset transfers may be
taxed unless specific
circumstances apply.
The assessment basis
for RETT is typically the
purchase price or the
higher market value.
Specific rules for real estate
share transfers exist only in
eight examined jurisdictions.
Germany has by far the
most stringent regime
whereby numerous constel-
lations of transactions and
transfers involving direct
and indirect ownership of
real estate are caught.
Facts & stats on RETT in 17 countries
5 | PwC | Real Estate Transfer Tax (RETT) 2023
Country-by-country summary
Country Asset transfer Share Transfer
Assessment basis Tax rate Assessment basis Tax rate
Austria Purchase price or real
estate value
0.5 – 3.5% Real estate value 0.5%
Belgium Contractual price or
higher market value
12 – 12.5% N/A -
Denmark Purchase price or at
least the latest public tax
valuation
0.6% N/A -
Finland Purchase price and other
consideration
4% Purchase price and other
consideration
2%*
France Purchase price 5.8% Real estate asset market
value
5%**
Germany Purchase price or real
estate value
3.5 – 6.5% Tax real estate asset value 3.5 – 6.5%
Ireland Purchase price or higher
market value
1 – 7.5% Fair market value 1 – 7.5%
Italy Purchase price or higher
market value
4 – 9% Purchase price or higher
market value
2 – 4%
Luxembourg Sales price or higher
market value
1.1 – 10% N/A -
the Netherlands Fair market value or
purchase price (if higher)
2 – 10.4% Real estate asset fair
market value (pro rata)
2 – 10.4%*
Norway Sales value 2.5% N/A -
Poland Market value 2% Market value 1%*
Portugal Purchase price or higher
tax registration value
5 – 10% Purchase price or higher
tax registration value
5 – 10%*
Spain Purchase price or higher
market value
6 – 11% Purchase price or higher
market value
6 – 11%
Sweden Purchase price or higher
market value
1.5 – 4.25% N/A -
Switzerland Purchase price or higher
market value
0 – 3.3% Fair market value 0 – 3.3%
United Kingdom Purchase price 0 – 15% Purchase price 0.5%
* only certain transaction types
** debt deductible from basis
6 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price (general rule)
or
•
Real estate value (comparable to
approximately 70% to 80% of the market
value) if no purchase price available (e.g.,
gifts, inheritance, certain reorganisations)
Tax rate
•
3.5% RETT (if purchase price is applicable)
or
•
0.5% to 3.5% RETT (if based on real estate
value)
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
3.5% RETT
Tax basis
Purchase price
Share transfer
Assessment basis
Real estate value (comparable to approximately
70% to 80% of the market value)
Tax rate
0.5% RETT
Additional regulations/remarks
•
Registration duty: 1.1%;
•
Taxable when 95% or more of the shares in
a company, holding an Austrian real estate
asset, are transferred or assembled in the
hands of one shareholder, or within one
Austrian corporate income tax group (0.5%
tax rate); and
•
On changes in the ownership of a partnership,
where 95% or more of the partnership
capital is transferred to new partners within a
five-year period (0.5% tax rate).
Austria
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Asset transfer
Assessment basis
•
Contractual price
or
•
Market value (if higher)
Tax rate
•
12% RETT (Flemish region);
•
12.5% RETT (Brussels capital & Walloon
region);
•
21% VAT in case of a new building
•
Reduced rates (compared to rates above) are
applicable in case of an acquisition of a right
in rem (long lease or building right) or when
the real estate asset is sold to a ‘professional
trader’
Reduced rates are also applicable in various
specific situations (i.e., for example acquisition
in compliance with the specific framework
of social housing, acquisition of protected
monuments etc.);
•
Additional notary’s fee: 0.057% - 4.56%.
Under certain circumstances (e.g., resale within
two years), registration duties can be recovered
on a partial basis (i.e., recovery/ offsetable
amount (either 3/5th or 36%) depends on the
real estate’s geographic location).
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
•
Walloon Region: reduced rate of 6% RETT on
the first instalment of €150,000 – €160,000
(subject to indexation) of the sales price in
case of an acquisition of a “modest house” or
“small rural estates”;
•
Flemish Region: reduced rate of 3% RETT
in case of acquisition by individual for own
residential use (or 1% in case of radical
energy renovation); or
•
Brussels region: standard rate of 12.5% RETT.
Tax basis
Provided that all conditions are met (a.o.,
acquisition by private individuals, own
residential use, first acquisition, etc):
•
Brussels region: taxable basis is reduced by
€175,000 if sales price is less than €500,000
(for building lot: reduction by €87,500 if sales
price is less than €250,000);
•
Walloon region: taxable basis is reduced by
€20,000; or
•
Flemish Region: Not applicable.
Share transfer
Assessment basis
The sale of shares is generally not subject to
RETT/VAT unless the transaction is considered
to be tax abuse (general anti-abuse measure).
Tax rate
N/A
Additional regulations/remarks
N/A
Belgium
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Asset transfer
Assessment basis
Purchase price (or at least the latest public tax
valuation (‘offentlig ejendomsvurdering’)
Tax rate
0.6% stamp tax
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
The transfer of shares is not subject to stamp
tax.
Tax rate
N/A
Additional regulations/remarks
Registration fee: DKK 1,850
Denmark
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Asset transfer
Assessment basis
Purchase price and any other consideration
made by the purchaser or liability the purchaser
assumes for the benefit of the seller that is a
prerequisite for the transfer.
Tax rate
4% RETT
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
Exempt for individuals of ages 18-39 for the
first purchase of shares in a housing company/
or real estate which entitle such individual to at
least 50% ownership in the apartment/building
that is used as a permanent residence.
Tax rate
•
2% RETT for shares in a housing company
which give entitlement to the ownership of an
apartment and
•
4% RETT for a building/real estate asset.
Tax basis
See above.
Share transfer
Assessment basis
(i) Share purchase price and (ii) company loan
related to the transferred shares, and any other
consideration made by the purchaser or liability
the purchaser assumes for the benefit of the
seller that is a prerequisite for the transfer.
Tax rate
2% RETT for shares in a company whose
activity mainly consists of owning Finnish real
estate directly or indirectly.
Additional regulations/remarks
The transfer of shares in a foreign company
whose activities consists mainly of direct or
indirect ownership of real estate is subject to
transfer tax if more than 50% of the company’s
total assets consist directly or indirectly of
Finnish real estate and either the vendor or the
purchaser is Finnish tax resident or a Finnish
branch of a financial institution.
The real estate transfer tax is not payable, when
the shares or real estate is transferred in a tax
neutral merger/demerger or change of business
form in accordance with the company law. Real
estate transfer tax is not payable when the
shareholder of the merging/demerging company
receives newly issued shares as consideration.
A tax neutral transfer of business to a newly
established company that continues the
operations of the transferring company is also
exempt from real estate transfer tax (subject to
conditions).
Only general comments related to transfers of
real estate or shares in real estate companies
for real estate transfer tax purposes have
been addressed above. In addition, certain
exemptions and additional requirements may
be applicable (regarding e.g., municipality as a
purchaser, shares of listed companies).
Finland
10 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price increased with any other
consideration provided to the seller
or
•
Market value (if higher)
Tax rate
The purchase of real estate assets built more
than five years ago:
•
5.8% registration duty;
•
0.1% land registry duty;
•
0.6% transfer tax for purchase of office,
business and storage premises located in the
Paris area; and
•
0.799% (plus 20% VAT) notary fees.
•
Specific regimes apply when the purchaser
makes the commitment either to erect a “new
real estate asset” within a four year period or
to resell the real estate asset within a five-year
period.
The purchase of real estate assets built less
than five years ago:
•
20% VAT;
•
0.71498% registration duty;
•
0.1% land registry duty; and
•
0.799% (plus VAT) notary fees
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
No specific tax regime in France.
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
Market value of all assets (including real estate
properties) held by the company reduced by
debt.
Tax rate
5% transfer duty if the company (French or
non-French) the shares are disposed of qualifies
as a French land rich company meaning more
than 50% of its assets (appraised at fair market
value) are represented by French properties at
the time of disposal or at any time during the
year preceding the disposal.
However, no transfer duty applies in the 2
following situations:
•
the shares of the company are listed; and
•
the purchaser takes the commitment to resell
the shares within a 5-year delay.
Additional regulations/remarks
The registration duty is borne by the buyer (if no
specific agreement) and is fully tax deductible
for companies or branch offices in France
(expense or via depreciation). The seller and
the purchaser are jointly and severally liable for
the payment of the transfer duties vis-à-vis the
French tax authorities.
France
11 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
The consideration, the purchase price
(without VAT) or in case of lack of assessable
consideration the real estate asset value
(‘Grundbesitzwert’).
Tax rate
•
3.5% RETT (Bavaria, Saxony);
•
5.5% RETT (Hamburg);
•
5% RETT (Baden-Württemberg, Bremen,
Lower Saxony, Rhineland-Palatinate, Saxony-
Anhalt);
•
6% RETT (Berlin, Hesse, Mecklenburg-
Western Pomerania); or
•
6.5% RETT (Brandenburg, North Rhine-
Westphalia, Saarland, Schleswig-Holstein,
Thuringia).
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
The consideration, the purchase price
(without VAT) or in case of lack of assessable
consideration the real estate asset value
(‘Grundbesitzwert’).
Tax rate
See above.
Additional regulations/remarks
The direct or indirect transfer of at least 90%
or more of the shares in a company (i.e.,
partnerships/corporations) that owns German
real estate within a 10 year period or which
shares are legally or economically, directly
or indirectly, unified in the hands of one
shareholder is subject to real estate transfer tax.
Rules apply to any German or foreign entity
owning German real estate regardless of its
business, real estate value or residence.
Due to complex rules, and lack of a wider group
relief, RETT may – e.g., in a group structure –
under certain circumstances be triggered twice,
or even more often, in connection with the
acquisition of one item of real estate or shares in
a company owning German real estate.
Subject to certain conditions, German RETT is
not levied on direct or indirect transfers (without
the payment of consideration) in the course of
a corporate reorganisation under the laws of a
member state of the European Economic Area
(EEA), provided at least 95% of the interest of
the controlling entity in the parties involved in
the reorganisation remains unchanged for five
years before and after the transaction (group
privilege).
Germany
12 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Consideration paid or purchase price (excl.
VAT);
or
•
Fair market value (if higher).
Tax rate
Residential real estate assets:
•
Up to €1,000,000: 1% stamp duty; or
•
Exceeding €1,000,000: 2% stamp duty.
Non-residential real estate assets: 7.5% stamp
duty*
Bulk purchase of residential units that are
not apartments within an “apartment block”
(houses/duplexes): 10% stamp duty*
* Irish stamp duty legislation provides for an
exemption from stamp duty where real estate
asset and land is acquired by an Approved
Housing Body.
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
1% - 10% stamp duty
Tax basis
See above.
Share transfer
Assessment basis
Consideration paid or fair market value of the
Irish real estate (if higher).
Tax rate
•
Shares deriving their value, or greater part
of their value, from non-residential Irish real
estate assets:
•
7.5% stamp duty where there is a change in
direct/indirect ownership of the shares and
the real estate assets are (i) held as trading
stock, or (ii) acquired/developed for a gain
motive (i.e., where real estate assets were
acquired/developed for the purposes of
realizing a gain on disposal rather than the
purposes of long-term income generation);
•
Shares deriving their value, or greater part of
their value, from 10 or more residential units
that are not apartments within an apartment
block: 10% stamp duty;
•
Shares or other marketable securities: 1%
stamp duty where the circumstances above
do not apply.
Additional regulations/remarks
•
The stamp duty is borne by the purchaser.
•
Partial refund of the 6% stamp duty rate
available in certain circumstances.
•
In certain scenarios, Irish stamp duty applies
to the transfer of shares (including non-Irish
shares) deriving the greater part of their value
from Irish non-residential real estate asset
or shares which derive their value from 10 or
more residential units that are not apartments
within an “apartment block”.
Ireland
13 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price or higher commercial value
(unless VATable transfers of residential assets)
or
•
Individuals may opt to apply a multiplier of
the cadastral value for residential buildings
(except VATable transfers)
Tax rate
Non-residential real estate assets:
•
4% registration tax if subject to VAT (total of
3% mortgage tax, 1% cadastral tax and €200
registration tax); reduced to 2% registration
tax for Italian REIF, SICAF or SIIQ;
•
9% registration tax (minimum €1,000) and
€100 as total of mortgage/cadastral taxes, if
out of scope of VAT.
Residential real estate assets:
•
€600 total of registration/mortgage/cadastral
taxes if subject to VAT (sale by builder (or
refurbisher) within five years or its option);
•
9% registration tax (minimum €1,000) if no
VAT applies (i.e., out of scope or VAT exempt),
reduced to 2% registration tax for “first
home” (minimum €1,000), and €100 as total of
mortgage/cadastral taxes.
Land:
•
Special rules for building lands and
agricultural lands
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
No tax exemption, but preferential rates (see
above).
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
N/A (a fixed registration tax of €200 does apply)
Tax rate
N/A
Additional regulations/remarks
N/A
Italy
14 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Sales price
or
•
Fair market value (if higher).
Purchase of real estate asset in a future state of
completion: duties apply on the value of existing
land and constructions/ VAT applies on the
portion “to be built”.
Tax rate
Tax rate on sale:
•
7% transfer tax (6% registration tax and 1%
transcription tax); or
•
10% transfer tax if the real estate asset
is located in Luxembourg City (1.5 x 6%
registration tax + 1% transcription tax)
(exemptions are available).
Tax rate on contribution:
If an immovable real estate asset is contributed
to a company in exchange for shares:
•
1.1% transfer tax (0.6% registration tax and
0.5% transcription tax)
•
1.4% transfer tax if the real estate asset
is located in Luxembourg City (1.5 x 0.6%
registration tax + 0.5% transcription tax)
Lower rates/tax credit:
•
Possible lower rates (upon specific procedure)
if real estate asset is purchased with the
purpose of being re-sold
•
Tax credit of €20,000 per individual taxpayer
(with minimum tax of €100), under conditions,
on purchase of dwelling for own use
Additional regulations/remarks
A separate real estate levy (‘prélèvement
immobilier’) applies only to Luxembourg
investment fund vehicles holding Luxembourg
real estate. The real estate levy applies to:
•
the gross (but VAT-exclusive) amount of
rental income deriving (directly or through tax
transparent entities) from Luxembourg real
estate assets, and
•
the net amount of gains on disposal deriving
from such assets (directly or through tax
transparent entities, either on disposal of the
real asset by a transparent entity or disposal
of the interest in the tax transparent entity
owning the Luxembourg real estate). The tax
is charged at a rate of 20% on both gross
rental income and disposal gains.
Purchase of apartments/buildings
for own use
Tax exemption
See above.
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
No transfer tax on the transfer of shares (except
a contribution as mentioned above).
The transfer of units in a partnership is
assimilated to the transfer of the real estate
asset owned through it (i.e., subject to transfer
tax).
Tax rate
N/A
Additional regulations/remarks
Assessment basis includes VAT (if VAT is
applicable)
Luxembourg
15 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
Fair market value or purchase price (if higher)
Tax rate
•
10.4% RETT; or
•
2% RETT (residential real estate asset
acquired by an individual that uses the real
estate asset as its primary residence).
Additional regulations/remarks
The tax is due by the purchaser of the real
estate asset. Both the acquisition of legal and
economic ownership is taxed with RETT. In
addition, RETT also applies when acquiring
limited user rights such as leasehold. The tax
basis in such case is the value of the real estate
asset increased with the value of the ground
rent. The value is calculated in accordance with
a legally described method.
A decrease of the assessment basis is possible
in case of a subsequent transfer of the same
real estate asset within six months. The
assessment basis of the subsequent acquisition
is reduced by the amount of RETT or non-
deductible VAT that was due in respect of the
previous acquisition.
Under conditions various exemptions may
apply, including the acquisition of real estate
that is subject to VAT by law, or ultimately six
months after first use of the real estate asset.
Purchase of apartments/buildings
for own use
Tax exemption
Under certain conditions, an exemption may
apply to a first-time homeowner under the
age of 35 that uses the real estate asset as
its primary residence and the total real estate
asset value, including appurtenances, does not
exceed €440,000 (2023).
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
The pro rata part of the fair market value of
the Dutch real estate asset represented by the
shares acquired.
Tax rate
10.4% RETT
Additional regulations/remarks
The acquisition of units in real estate funds
without legal personality is considered the
acquisition of the proportional part of the
economic ownership and therefore subject to
RETT. However, under circumstances no RETT
is due if the interest acquired, including the
interest already held, remains below one-third.
The acquisition or expansion of an interest of
at least one-third in a real estate company is
subject to RETT. A real estate company is a
company of which the assets consist for at least
50% of real estate assets and for at least 30%
of real estate assets located in the Netherlands.
A decrease of the assessment basis is possible
in case of a sub-sequent transfer of the same
real estate asset within six months (see above)
The assessment basis of the subsequent
acquisition is reduced by the amount of RETT
or non-deductible VAT that was due in respect
of the previous acquisition. A decrease of the
assessment basis is also possible in case of a
subsequent share transfer within six months.
the Netherlands 1/2
16 | PwC | Real Estate Transfer Tax (RETT) 2023
Under conditions various exemptions may
apply, including:
•
a legal (de)merger or internal reorganization;
•
acquisition of real estate that is subject to VAT
by law and transfer takes place ultimately six
months after first use of the real estate asset
(this exemption can also be applied if shares
are transferred and only for that reason no
VAT is due, if the acquisition of the shares
takes place ultimately six months after first
use of the real estate asset*).
*Note that at the time of the publication of this
document a consultation is pending which could
change this RETT exemption when it relates to
the acquisition of shares.
the Netherlands 2/2
17 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
Sales value (i.e., fair market value). The tax
is levied on the registration of a change of
ownership of real estate.
Tax rate
2.5% stamp duty (applies upon registration)
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
N/A
Tax rate
N/A
Additional regulations/remarks
There is no stamp duty on the sublease of
real estate asset, or on the transfer of shares
or parts in limited liability companies or
partnerships holding real estate asset.
Norway
18 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
For both VAT and Civil Law Activities Tax (CLAT)
- in practice: purchase price which should
correspond to the fair market value (FMV).
Tax rate
•
VAT: 23% (standard rate);
or
•
CLAT: 2%
Additional regulations/remarks
RETT (VAT/ CLAT) implications of the sale
of commercial real estate asset depend on
whether the object of the transaction may be
classified as a going concern (an enterprise
or an organised part thereof) or assets on a
piecemeal basis.
Based on current practice of the tax authorities
(including the guidelines issued by the Ministry
of Finance in December 2018), transactions
concerning developed commercial real estate
asset should typically be classified as an asset
deal on a piecemeal basis subject to VAT at
23% (either obligatory or based on election
of parties to a transaction), in most cases
recoverable. However, in rare cases, CLAT may
apply (to the full transaction or the part thereof).
In line with standard market practice, the
VAT treatment of the transaction (including
recoverability of input VAT) should be secured
via an individual tax ruling (with a standard
waiting period of approx. three months).
Depending on the timing of the deal and
commercial preference, other instruments for
securing the VAT position of the purchaser may
be considered, including i.a. a tax side letter
concluded with the seller or VAT insurance.
Purchase of apartments/buildings
for own use
Tax rate
•
8% VAT for new apartments within social
housing programme (generally, houses up to
300m2, apartments up to 150m2);
•
23% VAT for new apartments outside of the
social housing programme;
•
2% CLAT for used apartments (secondary
consumer-to-consumer market)
In case of VAT taxation, the recoverability
of input VAT may depend i.a. on the post-
acquisition usage of the apartments.
Tax basis
For both VAT and CLAT - in practice: purchase
price which should correspond to the FMV of
the real estate asset.
Share transfer
Assessment basis
Purchase price, which should correspond to the
FMV of the shares.
Tax rate
CLAT: 1%
Additional regulations/remarks
The tax basis may be subject to revaluation
by the tax authorities if the value thereof
used by the parties of a transaction differs
significantly from the FMV. CLAT is payable by
the purchaser.
Poland
19 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
As a rule, the higher amount of:
•
Purchase price; or
•
Tax Registration Value (TRV) determined in
accordance with the tax legislation.
RETT is born by the purchaser. Additional 0.8%
stamp duty is due, unless VAT is charged on the
sale (it is not possible to charge VAT on the sale
of residential real estate)
Tax rate
•
Urban real estate asset or autonomous
fraction of urban real estate asset exclusively
intended to residential purposes – up to 7.5%
RE T T;
•
Rural real estate asset - 5% RETT;
•
Urban real estate asset (except residential)
and other acquisitions for consideration -
6.5% RET T;
•
Urban and rural real estate asset acquired
by a tax resident in a black-listed jurisdiction
or is in a direct or indirect domain or control
relation with an entity domiciled in a tax haven
(except individuals) - 10% RETT.
Additional regulations/remarks
•
RETT is also due on other actions/ operations,
among others:
•
Promissory sale and purchase or exchange of
real estate agreements in which the economic
ownership transfer of the real estate assets
occurs;
•
Letting of real estate for more than 30 years;
•
Transfer of contractual position foreseen in
promissory sale agreement;
•
Entering into a promissory sale and purchase
of real estate agreement allowing the
promissory purchaser to assign its position in
this agreement to a third party.
Main tax exemptions are:
•
Acquisition of real estate assets by real estate
trading companies for resale;
•
Acquisition of real estate assets that have
been subject to urban rehabilitation;
•
Business restructuring or cooperation
arrangements;
•
Acquisition of buildings classified as national/
public/municipal interest;
•
Acquisition of real estate assets regarded as
eligible investment under the Tax Regime for
Investment Support (RFAI).
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
See above.
Tax basis
See above.
Share transfer
Assessment basis
Purchase price or higher TRV of, at least, 75%
of shares in a Portuguese company (either an
Lda or SA) or 75% of units in of close ended real
estate investment funds, whose assets consist
directly or indirectly for more than 50% of real
estate located in Portugal.
Tax rate
5 - 10% RETT (see above).
Additional regulations/remarks
No RETT is due if the real estate assets are
directly allocated to a commercial, industrial
or farming activity (except real estate buy-sell
activity).
Tax exemptions may apply (see above).
Portugal
20 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price (if subject to VAT); or
•
Real value of the real estate asset (if subject
to RETT). This value should be the agreed
purchase price, but due to an amendment in
the law, this value cannot be lower than the
reference value (specific value to be assigned
for each real estate asset by the Spanish
administration). When the reference value is
not available, the taxable base should not be
lower than the fair market value of the real
estate asset.
Tax rate
•
4% - 21% VAT
•
6% - 11% RETT (depending on location)
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
See above.
A reduced RETT rate may be applicable,
depending on the location and under very
particular circumstances.
Tax basis
See above.
Share transfer
Assessment basis
The transfer of shares in a real estate rich
company should be exempt from RETT, unless
the transaction is aimed to avoid RETT or VAT
which would have been due if the transaction
had been structured as an asset deal.
Tax rate
6 - 11% RETT (depending on location)
Additional regulations/remarks
N/A
Spain
21 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
The higher amount of the:
•
Purchase price; or
or
•
Real estate asset tax assessment value of the
real estate asset in the year prior to the year
the acquisition is registered.
Tax rate
•
1.5% stamp duty for individuals
•
4.25% stamp duty for corporate purchasers
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
N/A
Tax rate
1.5% stamp duty for individuals
Tax basis
See above.
Additional regulations/remarks
Apartments are normally owned by a
cooperative in which a person acquires a
share instead of the actual real estate. Such
transactions are not subject to transfer tax.
Share transfer
Assessment basis
N/A
Tax rate
N/A
Additional regulations/remarks
The sale of shares in a company/partnership
owning real estate is not subject to transfer tax.
Sweden
22 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price; or
or
•
Market value (if no purchase price or purchase
price is unusually low).
Tax rate
•
Range of linear tax rates between 0% up to
3.3% RETT (depending on canton/commune),
e.g.:
•
0%, i.e., no RETT (Schwyz, Zug, Zurich);
•
1.8% RETT (Berne);
•
3% RETT (Geneva);
•
3% RETT (Basel-City); or
•
3.3% RETT (Vaud).
Additional regulations/remarks
N/A
Purchase of apartments/buildings
for own use
Tax exemption
May be available in certain cantons/communes,
e.g.:
•
Subjective exemption (e.g., federation,
cantons, communes and churches)
•
Objective exemption (e.g., inheritance,
replacement purchase)
Tax rate
See above.
Tax basis
Purchase price or market value (see above)
Share transfer
Assessment basis
The transfer of shares in a real estate company
(definition depending on cantonal practice/law)
may be subject to RETT at the cantonal and
communal level. The RETT is computed on the
price of the real estate asset, respectively the
market value of the real estate asset.
Tax rate
Ranges between 0% up to 3.3% RETT
(depending on canton/commune)
Additional regulations/remarks
•
In most cantons the RETT is borne by the
purchaser.
•
Although some cantons have a legal basis
for the split of the tax between the purchaser
and the seller, there are some cantons where
the practice foresees a different split (e.g.
Basel-City, always subject to contractual
agreement despite rules in the tax law).
•
Certain cases of intra-group restructurings
are exempt from RETT.
•
In addition, land register fees and land public
fees may be due at cantonal and communal
level on the transfer of immovable real estate
assets.
Switzerland
23 | PwC | Real Estate Transfer Tax (RETT) 2023
Asset transfer
Assessment basis
•
Purchase price; or
•
Consideration provided
Tax rate
Stamp Duty Land Tax (SDLT) for residential real
estate asset in England and Northern Ireland:
•
Up to £250,000: 0% SDLT
•
£250,001 - £925,000: 5% SDLT
•
£925,001 - £1.5m: 10% SDLT
•
Above £1.5m: 12% SDLT
In addition to rates above:
•
3% surcharge for second homes/dwellings
acquired by companies (see below)
•
2% surcharge for non-UK resident purchasers
(see below)
There are also rules which mean that the
acquisition of individual residential dwellings
priced over £500,000 by a company or other
non-natural person will be subject to a flat rate
of SDLT at 15%, subject to certain reliefs if the
dwelling is to be used commercially.
SDLT for non-residential real estate asset in
England and Northern Ireland:
•
Up to £150,000 0% SDLT
•
£150,001 - £250,000 2% SDLT
•
Above £250,000 5% SDLT
Scotland and Wales have separate regimes:
Scottish Land and Buildings Transaction Tax
(LBTT) and Welsh Land Transaction Tax (LTT).
Scottish LBTT rates are graduated up to
12%, which applies to a transaction value
for residential real estate assets in excess of
£750,000 (or up to 16% where the additional 4%
for second homes or buy-to-lets applies), and
up to 5% for non-residential real estate assets.
Welsh LTT rates are graduated up to 12%, which
applies to a transaction value for residential real
estate assets in excess of £1.5 million (or up to
16% where the additional 4% for second homes
or buy-to-lets applies), and up to 6% for non-
residential real estate assets.
Additional regulations/remarks
Reliefs for intra-group transactions and certain
other transactions are available.
Residential real estate asset:
Where the land transaction comprises six
or more separate dwellings in England and
Northern Ireland, this will be treated as a non-
residential real estate asset transaction.
However, where more than one residential
real estate asset is purchased from the same
vendor, the purchaser can choose to pay SDLT
at a rate determined by the mean value of the
real estate assets purchased (subject to a
minimum rate of 3% for corporate purchasers or
5% for non-UK resident corporate purchasers),
rather than their aggregate value (multiple
dwellings relief).
Additional dwellings surcharge for residential
real estate asset
•
Applies to the acquisition of the second and
next residential real estate asset by natural
persons or any residential real estate asset by
non-natural persons.
•
Residential real estate asset anywhere in the
world owned by the individual purchaser or
their spouse or civil partner is counted for this
purpose.
•
If the previous residential real estate asset
is sold within 36 months of the acquisition
of the new one (replacement of main home),
possible refund of 3% additional charge.
Purchase of apartments/buildings
for own use
Tax rate
See above.
Tax basis
See above.
United Kingdom 1/2
24 | PwC | Real Estate Transfer Tax (RETT) 2023
Share transfer
Assessment basis
Purchase price (cash, shares or debt
consideration); some limited market value rules
for share for share transactions and for listed
shares.
Tax rate
0.5% stamp duty on all share transfers (whether
company holds real estate or not); higher rates
may apply to transfers into depositary receipt or
clearance systems.
Additional regulations/remarks
No specific tax rule in respect of real estate
owning entities; stamp duty/stamp duty reserve
tax (SDRT) applies to all UK share transfers.
•
Stamp duty or SDRT on each transaction. The
SDRT charge is cancelled where a document
of transfer is executed and stamp duty is paid.
•
Sale of shares in a UK incorporated company
(and non-UK company where the documents
are executed in the UK or relate to any matter
or thing done in the UK.)
Reliefs for intra-group transactions and certain
other transactions are available.
United Kingdom 2/2
25 | PwC | Real Estate Transfer Tax (RETT) 2023
Austria
Rudolf Krickl
rudolf.krickl@pwc.com
Belgium
Gregory Jurion
gregory.jurion@pwc.com
Denmark
Soren T.S. Keller
soren.keller@pwc.com
Finland
Mikko Leinola
mikko.leinola@pwc.com
France
Sandra Aron
sandra.aron@avocats.pwc.com
Germany
Sven Behrends
sven.behrends@pwc.com
Ireland
Ilona McElroy
ilona.mcelroy@pwc.com
Italy
Daniele di Michele
daniele.di.michele@pwc.com
Luxembourg
Thierry Braem
thierry.braem@pwc.com
the Netherlands
Jeroen Elink Schuurman
jeroen.elink.schuurman@pwc.com
Norway
Lars Helge Aasen
lars.helge.aasen@pwc.com
Poland
Slawomir Krempa
slawomir.krempa@pwc.com
Portugal
Jorge Figueiredo
jorge.figueiredo@pwc.com
Spain
Antonio Sanchez Recio
antonio.sanchez.recio@pwc.com
Sweden
Thomas Almendal
thomas.almendal@pwc.com
Switzerland
Anita Mikkonen
anita.mikkone[email protected]h
United Kingdom
Robert J. Walker
robert.j.walker@pwc.com
PwC Contacts
26 | PwC | Real Estate Transfer Tax (RETT) 2023
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Contact
PricewaterhouseCoopers Advisory N.V.
Thomas R. Malthusstraat 5
1066 JR Amsterdam
P.O. Box 9616
1006 GC Amsterdam
The Netherlands
Telephone: +31 (0)88 792 00 20
Fax: +31 (0)88 792 96 40
www.pwc.nl
Jeroen Elink Schuurman
Global Real Estate Tax Leader
jeroen.elink.schuurman@pwc.com
Ilona McElroy
EMEA Real Estate Tax Leader
ilona.mcelroy@pwc.com
