Good news for property buyers from 1 April 2024

Incidental purchase costs for property purchases reduced (at the time of the newsletter it could not be clarified whether the law has already entered into force)

Often known are the additional costs for property purchases amounting to 10 % of the purchase price: 3.5 % land transfer tax, 1.1 % land register entry fee, 1.5 - 3 % lawyer or notary fees (+20 % VAT) and commission of 3 % (+20 % VAT), always calculated from the purchase price.

To be discontinued from 1 April 2024 as follows:

1.1 % land register registration fee and the lien registration fee totalling 1.44 % of the loan amount. In the case of loans, many people are familiar with the bank charge of 1.2 % of the loan amount. What is less well known is that the bank registers 20 % more and the costs therefore amount to a total of 1.44 % of the loan amount.

The abolition of property transfer tax was also an issue, but this has not yet been affected by the preferential treatment for buyers.
But still!

The waiver of the aforementioned fees should apply to buyers with a maximum purchase price of EUR 500,000 and if the main residence is also established in the newly acquired property.

So Investors and second home owners may continue to pay all ancillary costs.

For purchase prices over EUR 500,000, this amount should represent an exemption limit and only the total ancillary fees should be applied to the amount above this.

Important:

The new regulation applies to property purchases from 1 April 2024 and after receipt of the registration application from 1 July 2024.

This exemption from fees is limited to 2 years, i.e. "normal" fees must be paid again for all entries received by the land registry court after 30 June 2026.

We will keep you up to date on the new law and its details!