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BULGARIA AND RUSSIA HAVE THE HIGHEST TAXATION ON RESIDENTIAL PROPERTY DEALS

Thu, Jul 12 2007 16:32 CET 252 Views

Bulgaria and Russia rank among countries with highest rates of tax on residential property deals, says Global Property Guide research.

Research examined several types of expenditure including registration fees, real estate agency commissions, taxes for purchase and VAT, 24 Chasa daily reported.

Results for Bulgaria and Romania showed that purchase expenditures were nearly 25 per cent of the property value, the main reason being VAT.

VAT in Bulgaria is 20 per cent and 18 per cent in Russia. This is the factor ranking Romania and Bulgaria on the top positions concerning residential property taxation.

Out of old European Union (EU) countries, Belgium and Italy have the highest expenditures on property deals, the lowest feature Estonia, Slovakia, Litva and Danemark with less than five per cent of the property value.

Expenditures are higher in southern Europe and lower in UK and the Scandinavian countries.

The commission for the real estate agency is usually shared between the seller and the buyer. Research said that it usually ranges between 1.25 and 1.5 per cent for both sides. In Bulgaria the figure is 2.5 per cent to three per cent for both sides.

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