The person purchasing the property, whether resident or not, is obliged to withhold and pay into the Public Treasury 3% of the sale price. Up until 31-12-2006, this withholding was 5%, but with the new law from 01 January 2007, the new rate of this withholding is 3%. |
| For the seller this withholding represents a payment on account of the capital gains tax payable on the sale. Therefore, the buyer will hand over to the non-resident seller a copy of form 211 (with which the withholding has been paid in), so that the seller can deduct the amount of the withholding from the tax payment he or she has to make as a result of declaring the capital gain. |
