How is real estate transfer income tax calculated?
Real estate transfer tax in definitive transactions is calculated according to the transaction value of the property at the time of registration of the transaction in the notary. At the time of transfer of residential or commercial properties, a transfer tax of 5% of the transaction value of the property is collected from the owner (seller). Determining the transaction value is the responsibility of the “Real Estate Calendar Commission”. The real estate calendar commission determines the transaction value through the following criteria:
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equivalent to 2% of the average daily price of the region
Considering factors such as skeleton, building life, usage and type of ownership
Considering the type of land use and location
Property transfer tax is calculated according to Article 59 of the Direct Taxes Law at 5% of the transaction value (which is determined according to Article 64 of the same law). In case of the transfer of the right of assignment (the right of acquisition or profession or the right to occupy the place or the rights arising from the commercial position of the place, which is known as goodwill), 2% of the amount received by the owner will be the criterion for determining the tax.
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Documents required to pay property transfer tax
Home office inquiry (mentioning the buyer’s name)
Copy of ownership documents, whether official or contractual or rental
Copy of municipal certificate
Copy of the buyer’s birth certificate
Copy of the seller’s birth certificate
Copy of the buyer’s national card
Copy of the seller’s national card
Copy of the Resolution of the Separation Assembly (if any)
Copy of building permit
End of work copy
Map and sketch of the place
The exact address of the property
Procedures for transferring house or apartment documents in the registry office
Refer to the registry office and inquire about the document
Referring to notary offices with the necessary documents and affidavit, at this stage, the status of the document is done in terms of whether it is held by the bank or other organizations or not. It takes about two days to 2 weeks to get the final result of these inquiries to check that the property being traded is not in urban construction plans. In addition, the costs related to this inquiry are borne by the owner of the document.
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Payment of municipal renovation and waste fees
Refer to the municipality of the region where the property is traded. With his identity documents and the desired property in hand, the owner of the document went to the municipality to settle the renovation and waste charges. The expenses are received from the owner of the document and the settlement sheet is received by the owner of the document.
The desired amount for taxes and renovation depends on the value of the property and its location. At this stage, any other debt the property has to the municipality will be settled.
Asset settlement
If there is a debt, the debt settlement should be done by referring to the asset department related to the property so that the settlement of the asset can be received.
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Final transfer of the document in the office
After settling the accounts, deliver the documents to the home office and specify the date of receipt. Both parties of the transaction provide a description of the full settlement of the property amount and the conditions of their sale to the notary public. When the deal is finalized. Benchag (definitive document) during this period, the regulation and related information are registered in the network system of official documents. The last cost you pay at this stage is the final transfer fee of the document. Usually, this fee is paid equally by the buyer and the seller. This process is related to the definitive document, and for the mortgage document, the bank’s letter must also be attached to the file, and the cost of the mortgage document is fully borne by the buyer, unless otherwise agreed.
Costs such as municipal and property account balances, taxes, and document inquiries are among the costs that the seller must pay. Of course, this issue can be changed with the agreement of the parties.