Saxony increases the land transfer tax from the previous 3.50 % to 5.50 %.
This is an increase of 57 %. In June 2022, in tranquil Radebeul, a few minutes away by limousine from the Saxon Parliament, the Saxon government (CDU, SPD and Greens) decided to increase the land transfer tax in Saxony.
The drastically increased real estate transfer tax is expected to apply from 01.01.2023; however, it is not yet possible to read about this. So it remains uncertain when it will apply. Most likely, however, the increase will come into effect on 1. 1. 2023.
THE AMOUNT OF THE TAX IS A MATTER FOR THE FEDERAL STATES
The land transfer tax is generally 3.5 per cent of the assessment basis. However, it can be set differently in the individual federal states. In the Free State of Saxony, in contrast to many other federal states, this option has not been used so far. This is now a thing of the past.
ORIGIN OF THE TAX
The real estate transfer tax arises with the conclusion of the legally effective purchase contract. The transfer of the property, the entry in the land register and the payment of the purchase price have no influence on the incurrence of the tax.
WHEN MUST MORE BE PAID
In the past, it was usually the case that the conclusion of a purchase contract in the period in which the lower real estate transfer tax rate was still applicable meant that this real estate transfer tax rate was also applied to this contract. We assume that the conclusion of a purchase contract that is still concluded until 31 December 2022 will result in the tax rate of 3.5% being applied.
