Frequently Asked Questions
Should the transaction fall under stamp duty, VAT, or a combination of both? It can make a big difference whether you’re buying real estate at 21%, 6%, or even 2% stamp duty. In some cases, it may be more beneficial from a tax perspective for the property to be subject to VAT, as it generally means stamp duty is not due.
Determining the most tax-efficient way to structure your property transaction requires a tailored approach: there’s no cut-and-dried solution. We’ll assess your specific situation, goals, and expectations and translate that into the best tax structure for your property. We typically assist with questions such as:
- Is the purchase or sale of the property or land exempt from, or subject to, stamp duty or VAT?
- Is it better to transfer an office building under stamp duty or VAT?
- When converting an office into residential units, is it more tax-efficient to avoid VAT?
- Is the VAT on purchase and maintenance costs of the property deductible?
- Is the rental of the property subject to or exempt from VAT, or does an exemption apply?
- Does the sale qualify as the transfer of an "old" property or a newly constructed property?
- Is the plot considered a building site or undeveloped land? And what steps can you take to qualify it as a building site?
