REALWorld Law

Taxes

Other costs of disposals

What costs/charges (other than tax) are payable on the sale of real estate and who are these charges payable to?

Angola

Angola

Coming soon.

Australia

Australia

If the real estate is sold by a real estate agent, the agent may charge commission for the services provided and for any associated costs such as advertising. Legal fees may be payable to a solicitor for implementing the transfer of the property.

If the property is subject to a mortgage or charge, the seller may have to pay a fee to remove the mortgage or charge over the property upon completion.
 

Belgium

Belgium

Costs may include legal and financial advice. Professional advisors normally charge an hourly rate for their services. Estate agents normally work on a commission basis related to the purchase price, depending on the property and the size of transaction.

Bosnia-Herzegovina

Bosnia-Herzegovina

There are none.

Canada

Canada

Coming soon.

China

China

When an agent is involved in the sale and purchase of property, an agent's fee is payable on the signing of the contract regardless of whether the sale and purchase proceeds to the final stage. The agent's fee rate ranges from 0.5% to 2.5% depending on local regulations.

Legal fees are also payable. 

Croatia

Croatia

There is a land registry fee amounting to HRK250 for the registration of transfer of ownership, as well as fees for the public notary and other advisors. Registration fees are payable by the person applying for registration, usually the buyer. Purchase agreements normally stipulate that the notary's fees are met by the buyer.

Czech Republic

Czech Republic

In general, every new owner of real estate needs to be registered on the Cadastral Register. There is a fee of CZK1,000 paid at the submission of an application for registration of the real estate transfer, a notarial fee of CZK30 for the attestation of signatures on the contract for the real estate transfer and costs connected with the valuation of the real estate. Czech law does not stipulate which party bears these costs and, therefore, it depends on the agreement between the parties.

Denmark

Denmark

There are none.

France

France

There are none.

Germany

Germany

There will be fees for the notary and possibly other legal advisors, as well as for the registration of the necessary changes to the land register, payable to the local court where the land register is held. Real estate transfer tax at 3.5 percent to 6.5 percent of the purchase price will also be payable.

Hong Kong

Hong Kong

A typical sale and purchase transaction would involve estate agents and solicitors and as such, the parties would incur estate agents' commission fees and solicitors' fees.

Hungary

Hungary

A service fee is payable to the land registry office. Legal and notarial fees may also be incurred. These additional costs are usually paid by the buyer unless agreed otherwise.

Any costs incurred in connection with the discharge of existing encumbrances are met by the seller.

Ireland

Ireland

The seller will need to pay legal fees, as well as fees of any agents employed to market and sell the property and carry out valuations.

Italy

Italy

In addition to the relevant taxes, costs include the fees of professional advisers and notary's fees. Notary's fees are mostly set by law and are related to the value of the transaction within a maximum and minimum range.

The buyer normally pays the notary's fees, while professional advisers are paid by the instructing party.

Japan

Japan

  • Brokerage fee – A brokerage fee consisting of 3% of the transaction price are often paid to real estate agents.  This is covered by any party appointing a broker.
  • Registration agent fee – Disposal registration is handled by a judicial notary (Shihoshoshi) in Japan, so the fee for this agent must be allocated by the parties.  Normally the buyer covers this fee.
Netherlands

Netherlands

Notary's fees will be incurred but can usually be negotiated. Other costs include the fees of professional advisors.

Nigeria

Nigeria

Professional fees Solicitors. The fees are either based on the scale of charges provided in the Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order 1991. This specifies the rates for solicitor’s charges; or by agreement of the parties based on the total value of the transaction.

Agency fees to the estate surveyors and valuers handling the sale. The fees are negotiated based on a percentage of the value of the property.

Surveyors fee for a survey plan of the property. A survey plan of the property is required for privately owned properties.

Norway

Norway

No other costs are payable except the usual costs of advisors etc.

Poland

Poland

In the case of an asset deal (ie the direct purchase of an interest in real estate by a corporate vehicle or individual), the purchase of real estate incurs the following costs:

  • The cost of preparing a notarial deed in the form of a purchase agreement (paid to the notary – the amount will depend on the value of the real estate, but cannot exceed PLN 10,000; usually paid by the buyer, although the parties may agree otherwise)
  • The cost of an excerpt from the land and mortgage register amounting to either PLN30 or PLN 60 (or if the excerpt is obtained online: PLN 20 or PLN 50)
  • The fee for registration in the Land and Mortgage Register (PLN 200 – usually paid by the buyer)
  • Stamp duty – where a power of attorney is granted, stamp duty of PLN 17 must be paid to the relevant municipality

Depending on the particular circumstances and the type of real estate, other costs may also be incurred (eg the cost of obtaining other documents required by the notary and the commission charged by the real estate agent).

In the case of a share deal (ie the purchase of shares in a corporate vehicle holding the real estate), costs include:

  • The notarial fee for certifying the signature under the share purchase agreement (SPA) amounting up to PLN 300 per signature
  • The court fee for registration of new shareholders in the National Court Register amounting to PLN 250
  • The fee for the announcement of registration of new shareholders in the Court and Business Gazette amounting to PLN 100

These costs are, generally, deductible for tax purposes if met by the seller. However, if the costs are met by the buyer, they are treated as part of the value of the real estate and may be deducted for tax purposes in the form of depreciation write-offs (in the case of real estate consisting of property other than land) or deducted against a subsequent sale of the real estate.

Portugal

Portugal

In Portugal, the transfer of real estate property, if executed by public deed, requires the payment of notary's fees. As a rule, the buyer is responsible for these fees and for the assessment and payment of IMT and any VAT (if applicable) payment of these fees, but also for the payment the Stamp Duty.

Romania

Romania

The costs include professional advisors' fees (ie the fees payable to accountants, lawyers, etc). Standard Romanian market practice is for notary and registration fees to be paid by the purchaser unless otherwise agreed.

Russia

Russia

In the event of a direct sale of real estate, stamp duty is levied on the registration of the ownership title transfer. The amount of stamp duty for legal entities is RUB22,000.

In the event of an indirect sale of real estate (through a 'share deal'), the relevant transactional costs/charges will depend on the type of the legal entity being purchased. These may include, for instance:

  • Stamp duties
  • Notary's fees for certifying the sales agreement
  • Independent registrar's fees for registering the change in the company's shareholders

Generally these costs are shared equally between the seller and the buyer unless the parties agree otherwise.

Slovak Republic

Slovak Republic

There is a fee of €66 for the registration of the new owner in the Land Register (€33 for registration by electronic means). This fee rises to €266 if the applicant applies for an accelerated registration which is then carried out within 15 days (€133 for registration by electronic means). In addition, all of these fees are reduced by €15 if a notice of an intended registration is filed. The notarial fee for the verification of a signature varies according to the notary and is in the range of €1.50 to €3.50. Responsibility for paying these costs depends on what the parties have agreed.

Spain

Spain

Costs related to the delivery of the property, including the notary's fees for the public deed of sale and purchase, delivery of the keys, professional advisors, etc, are paid by the seller, unless otherwise agreed by the parties.

Sweden

Sweden

Stamp duty is not payable if shares in the company holding the property are sold. Otherwise stamp duty is payable on the transfer of real estate. However, the buyer is responsible for paying this. Other costs may include legal and financial advice and estate agency fees. Estate agents normally work on a commission basis which generally varies between 0.5 percent and 5 percent of the purchase price, depending on the property and the size of the transaction.

Thailand

Thailand

Transfer fee

2% of the Land Department's appraisal value for the property. According to the Civil and Commercial Code, the seller and the buyer are equally responsible for paying the transfer fee unless agreed otherwise by the parties.

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

None.

United Arab Emirates - Dubai

United Arab Emirates - Dubai

Usually an agent or broker is used to find a buyer and their fees normally amount to a percentage of the sale price agreed with payment of such fees being conditional upon the sale completing. Lawyers' fees will vary, and there may be a need to notarize documents, execute a power of attorney etc., for which notary fees will be payable.

If the property is subject to a mortgage, there is likely to be an early redemption fee to be paid by the seller.

If the interest being sold is a long leasehold, usufruct or musataha (a right to use and exploit land belonging to another person, along with the right to build on that land), the freehold owner's consent is most likely required in order to effect the sale and a fee may be payable in order to obtain this.

UK - England and Wales UK - England and Wales

UK - England and Wales

Most property is sold through estate or other property agents, who charge commission for their services, normally conditional upon the completion of the sale. The seller pays the agents’ or brokers’ commission. The English system does not use notaries and all legal work is carried out by solicitors, whose rates vary depending on the complexity of the transaction. Sellers pay their own legal fees.

If the property is subject to a mortgage/charge, the seller may have to pay early redemption charges and associated documentation fees to remove the mortgage/charge over the property upon completion.

If the property is leasehold, the seller may have to pay fees to the freehold owner (namely the superior landlord) to gain consent to the sale.

UK - Scotland

UK - Scotland

Most property is sold through estate or other property agents, who charge commission for their services, normally conditional upon the completion of the sale. The seller pays the agents' or brokers' commission. The Scottish system does not use notaries and all legal work is carried out by solicitors, whose rates vary depending on the complexity of the transaction. Sellers pay their own legal fees.

If the property is subject to a mortgage/charge, the seller may have to pay early redemption charges and associated documentation fees to remove the mortgage/charge over the property upon completion.

If the property is leasehold, the seller may have to pay fees to the heritable owner (namely the head landlord) to gain consent to the sale.

Ukraine

Ukraine

Notary's fees, state duty (based on the value of the transaction), a pension fund duty and a state registration fee are normally payable.

Pension fund duty is paid by a purchaser of real estate at 1% of the value of the real estate (excluding VAT) indicated in the sale and purchase agreement.

State duty, also applies, at 1% of the contractual value of the real estate being transferred, if the transaction is notarized by a public notary. If the transaction is notarized by a private notary, only notary fees are payable.

The notary's fees are divided between the parties as agreed. The state registration fee varies depending on the title registered and time for registration of title. The state registration fee for the registration of title (ie the ownership) is from UAH190 (which applies to the standard registration procedure which takes up to five business days) to UAH9610 (which applies to registration within two hours). The registration of an encumbrance (eg a mortgage) is UAH100.

United States

United States

None.

Zimbabwe

Zimbabwe

Stamp duty is payable by the purchaser at a sliding scale rate of between 1 percent to 4 percent of the purchase price.

The transfer to title fees payable by the purchaser are determined by the Law Society of Zimbabwe and are payable at a sliding scale rate of between 1 percent to 4 percent of the purchase price. The buyer pays transfer fees unless otherwise agreed by the parties.

In a case of new land development, Deduction Fees is payable to the Surveyor General’s office and is calculated according to size of the land.

City council rates/bills also have to be cleared before a transfer can be processed and are charged three months in advance.

Trading licences must also be paid in cases where business will be carried out.

Other fees for professional advisors eg accountants or land inspectors.