Property transfer tax due on property purchased through share deals

What has changed?

Do you purchase property through a share deal, such as business premises? This is known as an indirect property purchase. From 2025, you have to pay 4% transfer tax. Previously, you did not have pay 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 does not apply to property projects already in progress. They fall under a transitional scheme.

For whom?

• entrepreneurs who want to purchase property

When?

The change in law has entered into effect on 1 January 2025.