ᐅ Property transfer tax applies

Hello,

I have a small problem: my brother is currently moving out of the property we jointly purchased. I have the right of first refusal and have therefore bought his share (47%). However, repeated property transfer taxes are now being charged.

Here is the background story:
In 2008, the property was purchased by our parents, and in 2011 it was transferred to the siblings, my brother and me. His share was 47%, mine was 53%. We lived in a kind of shared household. Our notary said that the property transfer tax should not apply because this is a type of "dissolution of a shared household." Additionally, we are relatives (although not in a direct legal line). The third point is that the property was already taxed when our parents bought it in 2008.

Now I want to file an objection but don’t know how to formulate it. Does anyone here know the legal situation in this case?

Thank you 🙂

Your specific situation isn’t entirely clear to me, but generally speaking, gift tax takes precedence over property transfer tax. For gift tax, there are exemptions (depending on the relationship and valid for over 10 years).

The mortgage statement is irrelevant in this context; what matters is when, how, and between whom the ownership is transferred.

You bought your brother’s share from him. As far as I know, you have to pay real estate transfer tax on this share. This tax is only waived when purchasing from a direct relative (parent, child). The fact that your parents already paid real estate transfer tax back then does not affect this, as that was a different purchase. Real estate transfer tax is incurred with every property sale and is always paid by the buyer.

FrankH schrieb:
and is always to be paid by the buyer.

Usually, this is specified in the deed of sale, but in principle, both the seller and the buyer are jointly liable for this tax. So, in the example, it would be no problem if the brothers share the property transfer tax (this request is simply communicated to the notary, who then reflects it in the contract).

Yes, you have to pay,

If the situation had not already worsened, it might have been possible to take the detour via the parents, which would lead to the notary charging fees twice.

However, and I believe this is the case, you have misunderstood the notary. While he expressed his opinion, he most likely referred you to a tax advisor regarding the property transfer tax, as only they are authorized to give advice on tax matters.

Whether it makes sense to file an objection afterwards, I cannot assess due to lack of expertise.