What changes in practice
Practically, this means that the AADE no longer accepts only the notarial amount as true, but checks bank transactions and if it detects that a larger amount has been paid for a property (than what was declared and appeared in the contract), it imposes tax based on the actual money paid.
The end of double pricing
For years, it was common in transactions to declare the objective value (i.e., lower) as the price, with the rest paid under the table, either in cash, through parallel transfers, or via accounts of relatives or other methods. Now, with digital connectivity and the increasingly widespread use of bank payments, this method no longer works.
Example
In a recent case, a contract listed a price of €383,815, but the bank showed a payment of €650,000. The tax authorities taxed the property based on the larger payment, also imposing the relevant fine for inaccurate price declaration.
What should buyers and sellers watch out for?
- Any amount transferred via bank for the purchase of a property will be checked, and if it differs from the notarial amount, it will be considered the actual price.
- Fines for hiding the price start at 10% and can reach up to €500,000.
- Now, the trick of low value on paper and the real value in hand is over; everything is easily cross-checked by authorities.
The experts' advice
Every property purchase or sale should be done transparently, with the full price correctly stated in the contract and transferred via bank transaction. Any attempt to hide the real amount carries significant tax and legal risks.
The era of easy "compromises" in transactions has passed forever. The AADE cross-checks the data, the bank tells the truth, and the state no longer relies solely on the contract!