| 1. Are
there any restrictions on an overseas company or business
buying commercial property? |
No, for buildings, but
restrictions apply for land plots, e.g. foreign companies
and citizens have to receive a permission from the local
municipality. Also restrictions on acquiring certain
types of land e.g. in the borders, protected zones,
agricultural and forest land. |
| 2. Is
land/property generally ‘registered’ so
that the title/ownership is guaranteed? |
Land property is generally
“registered” in the ‘Land Book’
– a public real estate register. Purchase agreements,
signed but not registered with the Land Book are not
enforceable against third parties. However, only property
that is registered with the Land Book may be transferred.
|
| 3. What
are the basic requirements/procedures? |
An application for the
registration in the Land Book, after receiving extracts
from the Cadastral register, references from the local
municipality, etc. |
| 4. On
average, how long does the process take? |
Obtaining preliminary
information- approximately 25 days; Land Book registration
then takes approximately 15 to 30 days. |
| 5. What
searches are advisable? |
Check for possible encumbrances
in the Land Book e.g. mortgages, registered lease agreements,
registered rights of first refusal, etc. and possible
legal restrictions, decisions of local municipalities
and protection zone information. |
| 6. What
are estimated disbursement costs? |
Notary fees for the signing
of the application for the Land Book (approximately
20-25€); state duties for the registration with
the Land Book (2% of the purchase price or cadastral
value; 20-25€ the registration and handing out
the Land Book certificate). |
| 7. What
are the local and/or national tax considerations in
the country of purchase? |
From 1 January 2004 the
immovable property tax rate will be 1% of the cadastral
value of the immovable property. There are some exceptions
for buildings erected or reconstructed for the performance
of economic activities. |
| 8. What
other annual local charges are obligatory? |
If buildings or structures
are sold within one year after renovation, reconstruction,
restoration or construction work has been accepted 18%
VAT applies. |
| 9. Are
there any other issues to consider? |
Check for soil/land contamination
and to ascertain any pending litigation concerning the
property. |
