Before entering into a sale and purchase transaction for a condominium unit, it is necessary to verify the title documents, the appraised cadastral value of the property, and the amount of taxes and fees payable upon registration of the transaction.
Taxes and fees are calculated based on whichever amount is higher: the appraised value or the agreed transaction price.
Payment is made at the Land Department at the time of registration in cash by the buyer and seller, as agreed between the parties (in the case of a resale transaction).
Taxes and Fees Table.
| Tax / Fee. | Rate. | Comments. |
|---|---|---|
| Transfer Fee. | 2%. | Payable upon registration of the transaction. |
| Specific Business Tax (SBT). | 3.3%. (3% state tax plus 10% municipal tax calculated on the tax amount.) | Payable if the transaction is considered commercial: 1. Seller is a legal entity (including a developer). 2. Seller is an individual who has owned the unit for less than 5 years. |
| Stamp Duty. | 0.5%. | Payable if the transaction is not considered commercial. |
| Withholding Tax. | 1% if the seller is a legal entity. 0%–35% if the seller is an individual. | For an individual seller, calculated based on the ownership period and property value. |
Alexandra Agapitova.
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