Shares based on time-sharing, shares in a golf-course company
File the transfer tax return and pay the tax on the shares you have bought. Time-shares are shares in a housing company or real estate company that give the right of possession over a specific recreational apartment at set times, during a few expressly scheduled weeks of the year.
If you bought some shares in a company that owns a golf course, entitling you to play there, you must file the transfer tax return and pay the tax.
File the return
File the transfer tax return in 2 months from signing the contract. If a realtor assists you with the buying of the time-share, it is the realtor’s responsibility to file the transfer tax return for you when the contract is signed. If you bought a time-share in a “newly constructed property” as defined by law, you must file the tax return and pay transfer tax on your purchase in 2 months from the date when ownership was transferred to you even if a realtor assists you.
- If you buy together with a co-buyer – typically your spouse – both of you must submit a transfer tax return.
- To complete the return, you should have the purchase and sale agreement or other contract on hand.
- However, you generally do not have to add very many enclosures. In MyTax, a window will appear that tells you whether an additional enclosure must be attached or whether it is enough if you just complete the tax return.
The paper-printed form can be used by individual taxpayers, general partnerships and limited partnerships. If the paper form is filed, you must enclose a photocopy of the contract.
Pay the tax
Pay the tax in 2 months from signing the contract (or if the property is treated as “new construction”, 2 months from the date when the right of ownership is transferred to you). If a realtor assists you when you buy the shares, you must pay the tax when you sign the contract.
- If you use MyTax to send the payment, reference numbers and other bank details are automatically transferred to the template for processing by your e-banking service. MyTax calculates the amount of transfer tax.
- If you pay via your personal e-bank instead, you need the bank account number for the Tax Administration and the bank reference number for transfer tax. To get the bank account and reference numbers, you can:
- Check them in MyTax: Click the Your tax types tab on the home page. Go to Payment status and click Paying taxes. You can find the reference number in the Transfer tax section under Other payment methods. You can find the Tax Administration bank account numbers at the end of the page.
- Call the service telephone number +35829 497 026 (Payment transactions, limited service available in English, standard call rates)
The amount of tax to pay must have 2 decimal points. After you have made the necessary calculations to arrive at the right tax, round it out to the nearest cent as usual. Example: your calculation result is €345.67890. You must round out the result in order to pay €345,68 as your tax.
If there is more than one buyer – two spouses, for example – each must pay their own share of the transfer tax on a separate bank transfer and enter their personal reference numbers. The amount will be displayed as a paid tax in MyTax on the following business day or the day after that.
You receive a certificate of transfer tax
You will receive a certificate on filed and paid transfer tax in MyTax or by post. Normally, after you have filed and paid, the certificate will appear in MyTax in 2 days. Finding the certificate in MyTax. If you file your return on paper, wait for the certificate of transfer tax to become available in MyTax a little later.
If a realtor assists you when you buy the shares, you get the certificate proving the payment of the transfer tax from the realtor (the estate agent’s office). MyTax does not contain the certificate if the realtor issued it.
Transfer tax on shares based on time-sharing, shares in a golf-course company
The tax is 2% on the purchase price of the shares and on any other consideration and on the housing-company loan. The “debt-free price” (velaton hinta; skuldfritt pris) contains both the price of the shares and the part representing the housing-company loan, if any. It is not important whether you pay up the specific part of the housing-company loan when you sign the contract or whether you pay it in small instalments every month.
You can use the transfer tax calculator to help with your calculations.
Example: Tatu purchases the shares that entitle him to use a recreation home during agreed weeks. The price is €20,000 as the advertised “sale price” – myyntihinta. There is a loan balance of €8,000 allocated by the company to Tatu’s shares. This means that the debt-free price is €28,000. The €28,000 is the base that Tatu must use for transfer tax. The tax is 2% × €28,000 = €560. It does not matter whether Tatu pays off the housing-company loan when he makes the purchase, or whether he pays them off gradually as part of his monthly maintenance charge.