🏠 Do I have to pay tax when I sell my flat or house?

With conditions

Quick answer

It depends — profit on selling property is taxed at 15% GPM, but the widely repeated myth that "you must hold it for 10 years" is already wrong from 2026. From 1 January 2026 real estate can be sold tax-free once it has been held for 5 years from acquisition (previously 10 years). A 15% personal income tax is paid on the profit – the difference between the sale and purchase prices, less allowable costs. Regardless of the holding period, GPM is not due if you sell a home in which your place of residence was declared for the last 2 years, or if it was declared for less but within 1 year the proceeds are invested in another home where residence is declared. Most importantly, and often overlooked: the part of a large profit above the annual threshold is taxed at 20%, and the income must be declared by 2 May, even if no tax is due.

📋 The rules

Profit on selling property is taxed at 15% GPM (sale price minus purchase price and allowable costs)
From 1 January 2026 the relief applies after holding the property for 5 years (previously 10)
GPM is not due on a home where residence was declared for the 2 years before sale, whatever the holding period
If declared for under 2 years, the relief still applies if within 1 year the funds go into another home
The profit above the annual threshold is taxed at 20%; income must be declared by 2 May

🔓 Exceptions

Inherited property or property gifted by close relatives follows separate rules for setting the acquisition price, so the profit may be calculated differently
When selling not a home but a commercial object or a land plot, the residence-declaration relief does not apply – only the 5-year term matters
If the property was used in individual (self-employed) activity, different taxation and depreciation rules may apply

⚠️ Penalties & fines

The biggest risk is not the fine itself but undeclared income, which the tax authority spots automatically. The notary reports every transaction to the registers, so the STI (VMI) sees the sale and may ask why the income was not declared. Often overlooked: late payment of GPM accrues late-payment interest, and failing to file the return or hiding the tax brings a fine based on the unpaid tax under the tax-administration and ANK rules. It is wrongly assumed that if the property sold at no profit there is nothing to declare – in fact the return must be filed even when no tax is due, and it is precisely its absence that often turns into an audit. If large sums are hidden, the STI assesses the tax by force, adds interest and a fine, and can pass the debt to a bailiff for enforced recovery from accounts or property.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

How long must I hold property to avoid the tax?

From 1 January 2026 it is enough to hold real estate for 5 years from acquisition, whereas a 10-year rule applied before. After this term the profit on a sale is exempt from personal income tax, whether it is a flat, a house or a plot.

When is no tax due even if I held it for less?

GPM is not due if you sell a home in which your place of residence was declared for the two years before the sale. The relief also applies where residence was declared for less, but within one year you invest the proceeds in another home and declare residence there.

What is the rate and what is it charged on?

A 15 percent personal income tax is paid, not on the whole price but on the profit – the difference between the sale and purchase prices, less allowable costs. The part of the profit above the annual statutory threshold is taxed at the higher rate of 20 percent.

Do I have to declare a sale made at no profit?

Yes, real estate sale income generally must be declared by 2 May of the following year, even if no tax is due. It is precisely the failure to file that most often triggers an audit, because the tax authority learns of the deal from the notary and the registers.

How is inherited property taxed?

When selling inherited property or property gifted by close relatives, separate rules apply for setting the acquisition price, so the taxable profit is calculated differently than for bought property. Before the deal it is worth checking with the STI what acquisition value will be recognised, to avoid an unexpected tax bill.

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