StampDuty
Stamp Duty
A tax paid to the state when buying real estate, usually a percentage of the price. A separate cost item on top of the property price, factored into the budget.
- What it is
- A tax paid to the state on buying real estate, usually a percentage of the price
- Where it applies
- Almost any property transaction, including for residence
- How much
- The rate depends on the country and the property’s price
- Distinctive feature
- A separate cost item on top of the price
- Can you prepare
- Yes: build the duty into the full budget of the deal
In plain words
Stamp duty is a tax the state levies on the purchase of real estate, usually as a percentage of the property’s price. It is paid for the transaction itself and the registration of ownership, separately from the price of the property, and it cannot be “included” in the price — it is an additional cost for the buyer.
The amount of the duty depends on the country and often on the price: in some places it is a fixed percentage, in others a progressive scale — the more expensive the property, the higher the rate. Other associated costs are often added to stamp duty: notary, registration, legal support. Together they can noticeably increase the total cost of the deal.
In citizenship and residence programmes through real estate, it is important to build stamp duty into the budget from the start: the investment threshold is calculated on the property’s price, and the duty comes on top. That is why the full cost of entering the programme is calculated with all taxes and costs, not just the property price.
Where stamp duty arises
What matters about stamp duty
- Usually a percentage of the price
- Fixed or a scale
- Depends on the country
- For the transaction
- Registration of ownership
- Separate from the price
- Notary
- Registration
- Legal support
- Comes on top of the threshold
- Built into the budget
- The full cost of entry
How to account for stamp duty in the budget
- 01Find out the country’s rate
- 02Calculate the duty from the price
- 03Add the associated costs
- 04The full budget of the deal
- 05No surprises
What you need to know
- Stamp duty is a tax on buying real estate
- Usually a percentage of the property’s price
- It is paid separately from the price, on top
- The rate depends on the country and the price
- In programmes it is built into the full budget
Common mistakes
- Counting only the property’s price and forgetting the duty
- Not accounting for the notary and registration
- Comparing countries without the total cost
- Underestimating the progressive scale for expensive properties
- Learning of the costs only at the deal
What this means for a BRIDGES client
We always show the full budget of the deal: the property’s price plus stamp duty, notary, registration and support — with no hidden lines. That way you see in advance the total cost of entering the programme, not just the price tag of the property.
Frequently asked questions
01 /What is stamp duty?
A tax paid to the state on buying real estate, usually a percentage of the price. It is paid for the transaction and the registration of ownership, separately from the property’s price.
02 /How much is it?
It depends on the country and often on the price: there may be a fixed percentage or a progressive scale. The exact rate is confirmed for the particular country and property.
03 /Is the duty included in the property’s price?
No, it is a separate cost for the buyer on top of the price. That is why the full budget of a deal is always higher than the property’s price tag.
04 /What other costs are there?
Notary, registration of ownership, legal support, sometimes taxes. All of these are budgeted together with stamp duty.
05 /Does it affect the programme budget?
Yes: the investment threshold is calculated on the property’s price, and the duty and costs come on top. That is why the full cost of entry is calculated with all taxes.
06 /Can the duty be reduced?
The rate is set by the state, but the total depends on the price and type of property. Sometimes the choice of property or the structure of the deal affects the amount — this is calculated in advance.
See also
Read next
This material has undergone editorial review by BRIDGES.
Want the full budget of the deal?
We will calculate the property’s price, stamp duty and all associated costs — so that the total holds no surprises.