Taxes and other fees relating to PURCHASES
- Acquisition taxes: 4% of the sale price.
- Legal fees: 1% - 2% of the sale price IN TOTAL the taxes you pay equal approximately 6% of the sale price! Taxes are due between 2 and 6 months after purchase.
Tax on land CAPITAL GAINS MORE TAXES ON INCREASED PROPERTY VALUE AFTER 5 YEARS!
Capital gain is calculated based on the difference between the purchase price and resale with deductions of certain expenses such as renovations. This amount is taxed at up to 15% if it is not reinvested.
This tax decreases in the following manner:
- Resale within two years after acquisition.
- Resale 2 years after acquiring 15% to 90% of the capital gain.
- Resale 3 years after acquiring 15% to 60% of the capital gain.
- Resale 4 years after acquiring 15% to 30% of the capital gain 5.
Resale 5 years after the acquisition 0% Low tax on RENTAL INCOME, ONLY 15%