Property transfer tax due on property purchased through share deals

What changes?

Do you purchase property through a share deal, such as business premises? This is known as an indirect property purchase. From 2025, you will pay 4% transfer tax. Currently, you pay no VAT or transfer tax on indirect property purchases. If new property is purchased and transferred directly, sellers do have to pay 21% VAT.

This measure ensures that both forms of property transfer (direct and indirect) are taxed more equally. The measure will not apply to property projects already in progress. They will fall under a transitional scheme.

For whom?

• entrepreneurs who want to purchase property

When?

The change in law will enter into effect on 1 January 2025.