We are starting up a company, and we have bought a real estate unit for the company. In whose name should the transfer tax return be filed and the transfer tax paid?

When the contract for buying a unit of real estate has been made in the name of a company that has not yet been established fully, the party that should submit the transfer tax return can be either the person signing the contract or the company that is in the process of establishment.

We recommend that you use the buyer’s or the company’s name consistently: the same party should file the return and apply for registration of title to the property. 

If an official notary public submits the application for transfer of title, the records will indicate that the applicant is the person who had bought the real estate on behalf for the company. In this case, the party submitting the transfer tax return and paying the tax should be that person, not the company. This ensures faster processing of the tax return.

After the company’s process of setting up is complete, and an application for transfer of title must be submitted, we recommend that the new company does that. The company should also submit the transfer tax return and pay the tax.

After the person who bought the real estate has submitted the transfer tax return, can the Tax Administration change the records so that the return had been submitted by the new company?

No, if an individual buyer has submitted a return or paid transfer tax, the Tax Administration cannot change the records i.e. make the company the applicant. After the buyer has submitted the return and paid the tax, the obligation to file and pay transfer tax is fulfilled. However, when the records are finalised, the National Land Survey will grant the transfer of title to the company.

If necessary, the Tax Administration may contact the taxpayer. However, in most cases the information on thew transfer tax return and tax payment is sent to the National Land Survey automatically.