What are the Taxes / VAT that I will be liable to pay when taking possession of title deeds?
A stamped Contract of Sale needs to be submitted to the Land Registry Office and the valuation will be assessed on the purchase price as stipulated in the Contract of Sale. However, the Land Registry Office reserves the right to conduct their own valuation upon the property in question if they are not content that the Contract of Sale submitted reflects the true market value of the Property. VAT will be payable at a rate of 5%, which is payable upon possession of the property. You will also need to pay the transfer tax which is payable upon the transfer of the title deed into the individuals name, which is normally 6% but can be reduced to 3% as a ‘once in a lifetime’ opportunity: so, if you are planning to purchase a more expensive property in the future, you may wish to reserve the reduced tax rate until such time. (Please note that these rates may possibly change in the future, and you should always check at the time of signing a contract.)