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Real estate terms that start with T
Letter T
Property tax
The property tax must be paid by the owners of real estate, whether it is land (property tax on unbuilt properties) or constructions of any kind (houses, buildings ...) (property tax on built properties).
This tax is paid once a year, depending on the situation on 1 January of the year.
When the property is sold, it is therefore the owner on January 1st who is liable for the property tax to the tax administration. However, it is customary in the authentic deed to provide that the buyer will reimburse the seller the property tax in proportion to the number of months elapsed from the signing of the authentic deed.
This tax is paid once a year, depending on the situation on 1 January of the year.
When the property is sold, it is therefore the owner on January 1st who is liable for the property tax to the tax administration. However, it is customary in the authentic deed to provide that the buyer will reimburse the seller the property tax in proportion to the number of months elapsed from the signing of the authentic deed.
Overall Effective Rate (TEG)
The TEG (global effective rate) or annual percentage rate of charge (APR), is intended to inform the borrower about the overall cost of the loan offered to him, all costs included.
The law specifies the elements that make it possible to determine the TEG:
Advertisements and loan offers must mention the TEG.
The law specifies the elements that make it possible to determine the TEG:
- - The interest rate, itself,
- - Application fees, commissions, tax fees, etc., which are carried over to the borrower,
- - The cost of insurance.
Advertisements and loan offers must mention the TEG.
Real estate VAT
Transfers of immovable property are subject either to transfer tax for consideration or to real estate VAT (as opposed to ordinary VAT) and reduced notary fees. What makes it possible to determine what duties are to be paid is whether the seller is a taxable or non-taxable person. It should be noted that since 1 January 2013, the scope of real estate VAT and the related reduced notary fees no longer applies for a sale of a new property (i.e. less than 5 years old) between two individuals. The transfer tax payable is the duty of 5.09% or even 5.80% in most departments.
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