Both the buyer and seller are required to electronically submit a joint property transfer tax declaration before signing the contract. This declaration is processed through the AADE myProperty platform, with the buyer responsible for paying the tax.

According to the recently published detailed guide by the Independent Authority for Public Revenue (AADE), extra caution is needed when dealing with properties located outside the objective value system.

In such cases, the tax office determines a provisional market value for the property within five working days, based on comparative data or price registers. If this provisional value matches the declared value, the declaration is considered truthful. Otherwise, the buyer has two months to accept the valuation by submitting an amended declaration, which is still considered timely.

The AADE guide also notes that for properties outside the objective system, a contract cannot be drafted if more than three months have passed since the declaration was submitted.

Declarations That Must Be Submitted via myProperty

The following declarations are mandatory through the myProperty platform:

• Initial timely transfer declarations for properties within the objective value system, including cases of usucaption, differences in property area, execution of preliminary agreements, and the establishment of horizontal or vertical ownership rights.
• Declarations for properties acquired through a forced auction.
• Declarations for the cancellation of a notarial contract.
• Amended declarations, provided no contract has been signed and the initial declaration was made via myProperty.

For all other cases, declarations must be submitted either in paper form or digitally via the “My Requests” application on myAADE.

What Applies to Usucaption (Adverse Possession)

The AADE guide clarifies that if a property is transferred and the seller claims ownership via usucaption without a registered title, then a tax is imposed on this acquisition. The value is calculated based on either the objective value system or the declared price (whichever is higher).

However, no usucaption tax is due if ownership derives from an inheritance, the establishment of horizontal ownership by a sole owner, if the beneficiary is exempt under special provisions, or if a title with a declared taxable acquisition already exists.

If a contract is canceled or a court decision recognizing usucaption is not registered, the usucaption tax is refunded as unduly paid.