What real estate sales taxes need to be paid today

Planning to sell your home or land in 2026? Good news for property owners kicked off the year. Starting from January 1, 2026. The tax reform has officially come into effect, significantly easing the tax burden for sellers. As your real estate agent, I'm sharing the most important highlights that will help you save thousands of euros.

Big News: The retention period has been shortened to 5 years

Starting this year, a significant amendment to the Personal Income Tax (PIT) Law has come into effect:

• The Old Order The property had to be held for 10 years to avoid paying taxes.
• The new order (starting 2026): If the asset in your possession was bent 5 years, having sold it you don't pay any VAT, no matter how much profit you make.

Example: If you bought an apartment in March 2021, you can sell it in April 2026 without any taxes to the state. Previously, you would have had to wait until 2031!

2. What to do if you sell it before 5 years?

If you haven't owned the property for 5 years, you can still take advantage of „residence“ exceptions, but the devil is in the details:

• The 2-year rule: No need to pay GPM if you declared your place of residence there for at least the last 2 years up to the sale.
• 1-year rule: If you lived there for a shorter period, you don't pay tax only if you buy another property within 12 months and declare your residence there.

💡 Broker's Critical Tip: To take advantage of these benefits, your place of residence in that facility must be declared up to the day of the transaction (signing of the notarial deed). VMI checks data according to the sales date, therefore I strongly advise my buyers and clients: Declare yourself only the day after the transaction. If you check out even one day earlier, you may lose your entitlement to the subsidy and face a thousand-dollar bill!

3. Important: Obligation to declare income (Even if tax is €0!)

Many sellers make a big mistake – they think that if VAT doesn't have to be paid, then the transaction doesn't need to be declared either. That's a misconception.

• When is it mandatory to declare? If the property sold was not held for 5 years, you must declare the income on your annual income tax return (form GPM311).
• Even if a discount applies: Even if you utilized the 2-year residency rule and the tax amount is zero, you must still declare the transaction. This way, the State Tax Inspectorate (VMI) sees on what basis you used the exemption.
• Endings Property sold in 2026 will need to be declared by May 1, 2027.

4. What does the State Tax Inspectorate (VMI) allow (and not allow) to be included in expenses?

If you still have to pay 15%% income tax, the tax is calculated on net profit. Here is a detailed list of what reduces your taxable amount:

• ✅ CAN be deducted (reduces taxes):
  • Cost of acquiring property: Amount for which you purchased the real estate (as specified in the purchase agreement).
  • Notary and Public Notary fees: All mandatory fees for contract notarization and property registration.
  • Capital Repair / Reconstruction Costs: Only essential improvements (e.g., roof replacement, wall insulation, utility system installation). Official invoices are required. in your name.
  • Mandatory measurements: Energy performance certificate, cadastral or geodesic measurements.
• ❌ CANNOT DEDUCT (does not reduce taxes):
  • NT broker commissions: Although the broker helped achieve a higher price, according to current VMI practice, this is not a mandatory acquisition cost.
  • Simple (cosmetic) repair: Repainting walls, new laminate flooring, or tiles do not reduce taxes – this is considered property maintenance.
  • Bank interest: Interest paid on a housing loan does not reduce taxes.
  • Furniture and home appliances If you are selling an apartment with furniture, their value is usually not deducted, unless they are listed separately as movable property in the contract.

5. Inherited Property: Count from the date of inheritance

When selling inherited property, the 5-year period is calculated from Inheritance dates (date of the notarized certificate). This is a common point of confusion, so I recommend consulting a specialist before planning a quick sale.