Property/Land transaction for Buying/Selling
- Income tax, 5% of Tax property sale value (assessment of government) plus 30% for central Government tax
- Agent commission up to 3% of Property Value - if transaction is through the property agent
- required document :complete the minimum 10 years latest receipt of annual property tax, if owner/seller doesn't complete the payment yet they should pay, otherwise transaction can't be done.
point 1-3 are the only seller cost, notary fee usually paid by buyer but sometimes buyer ask owner to share 50-50 for the notary, notary fee for cheap house is around USD250 - cheap house mean if notary take 1% of value property from transaction the fee will be less than USD250 include previous sell/buy certificate checking and cost for new legal transaction certificate between buyer and seller. Normal fee for notary is 1% of property value, ex. Property value is USD 100,000, fee is USD 1,000. but buyer can do a negotiation with notary minimum 0.5% of property value, depend on the notary
New rule : Tax can't be as same as the tax property sale value, additional cost 30% is must. but sometimes notary can help buyer to reduce the tax up to 10% instead 30% so buyer will use his service, which has a high risk if government do an audit
- custom tax transition, the amount as same as tax property sale value plus 30% reduce USD 6000 times 5%, pay to local government where the property is
- Notary fee up to 1% of tax property sale value, depend on the notary
House sold for USD 300,000
Tax property sale value 2013 USD 100,000
Income tax : 5% x (USD 100,000 + 30%) = USD 6,500
Agent commission : 3% x USD 300,000 = USD 9,000
custom tax transition : 5% x ( (USD 100,000+30%)- USD 6,000) = USD 6,200
Notary fee : 1% x USD 100,000 = USD 1000
Why do I bring the property topic in study in taiwan, if one day you have bless and can invest in property both in taiwan or indo at least you understand the legal system in each country. I will update the terms in mandarin soon, need 100 likes on facebook to open the mandarin terms, let's ask your friend to like this post.