The payment of tax is made by filing the forms 211 and 212 as follows:
1. The purchaser who is acquiring the real estate, regardless of whether they are a tax resident or non-resident, is obliged to withhold and deposit 3% of the sale price. The 211 form is available from the local tax office and must be filed within one month from the date of the signature on the notarised sale deed.
This withholding acts as a payment on account of capital gains tax arising from the capital gain (current rate 18%). Should the amount withheld be higher than the tax liability, the vendor will be entitled to a refund of the balance.
2. Four months from the date of the signature on the notarised sale deed, the vendor will either:
- Pay the outstanding amount in addition to the 3% (if the tax liability is than 3% of the sale price), or:
- Apply for the refund of any balance as mentioned above (if the tax liability is inferior to 3% or there is a capital loss). The Tax office should process the refund within the following six months; if it takes longer, the applicable rates of interest will apply.