Whether you want to buy or sell a real estate (apartment, house, garage, land), you need to know what taxes and charges (expenses) are required to pay after the sale-purchase transaction ends (2020-2021) year.
What taxes should the seller pay?
After the transaction, the seller has to pay the income tax or the capital growth.
The taxable income or the capital increase represents the difference between the amount with which the property is sold and its basic value (which was spent for the purchase of the property).
Taxable Income Formula
The sale price of the real estate - the previous purchase price = Taxable income
Exemple:
300 000 MDL - 200 000 MDL = 100 000 MDL
Income Tax formula for real estate sold in 2020
Taxable Income /2 x 12% = Income Tax
Exemple:
100 000 MDL /2 x 12% = 6 000 MDL
Income Tax formula for real estate sold in 2019
Taxable Income /5 x 12% = Income Tax
Exemple:
100 000 MDL /5 x 12% = 2 400 MDL
Exemptions from tax for individuals
According to Article 5 page 46 of the Fiscal Code of the Republic of Moldova, individuals are exempt from paying the tax on the main residence that meets both conditions:
- is owned by a taxpayer for at least 3 years;
- is the place of residence of the taxpayer in the last three years prior to the alienation of property.
If the alienated property is obtained through a donation agreement from the first degree relatives, and this is the basic dwelling confirmed by the registration of the residence visa, it is also exempt from paying the income tax.
Also, the legislation stipulates that in the case of the basic dwelling, it is allowed to reduce by 10 thousand lei for each year in which it was living in the unvalued asset. But if it was evaluated, is taken into account the data of the last evaluation from the Cadastre.
What taxes and expenses does the buyer have?
When buying a building (apartment, house), the buyer is required to pay the state tax for the transfer of the right of ownership and the fee for the notary services at the authentication of the sale-purchase contract.
1. The cost of notary services
Individuals must pay notarial services in the amount of 0.1% of the transaction value for the authentication of valuable transactions with real estate.
- up to 20.000 lei 1,3%, but not less than 180 de lei
- 20.001 – 50.000 lei 1,0%
- 50.001 – 100.000 lei 0,9%
- 100.001 – 200.000 lei 0,8%
- 200.001 – 400.000 lei 0,6%
- 400.001 – 600.000 lei 0,5%
- 600.001 – 800.000 lei 0,3%
- 800.001 – 1.000.000 lei 0,2%
- de la 1.000.001 lei 0,1%
Legal entities, for authenticating the valuable transaction with real estate, must pay the notarial services by applying the following coefficients:
- < 800.000 lei = 0,5%
- 800.001 – 1.000.000 lei = 0,2%
- from 1.000.001 lei = 0,1%
The minimum payment amount for the authentication of valuable transactions with real estate is 120 lei.
1.1 The cost of notary services for the "Prima Casa"
The amount of the payment for the authentication of the sale and purchase contracts of the real estate through the "Prima Casa" State Program, as well as for the authentication of the mortgage contracts under this program, is set in the amount of 0.1% of the transaction value.
2. The state tax
The buyer, for the transfer of the right of private ownership to apartments, dwellings, garages, must pay the state tax in the amount of 0.5% of the contract price, but not less than the value indicated in the register of real estate.
3. The tax for operating changes in the real estate register
The buyer also has to pay the tax for modifying the Real Estate Registry (CADASTRU) to register the property right. The cost of the service differs according to the number of days (urgent or normal) in which the act is issued, and the place where the asset is located.
