Those buying and selling property in the last quarter of 2023 will face tight controls and possibly fines and penalties if they decide to do so. cash transactions.
AADE intends to take strict control of those who are in a hurry to complete real estate purchase and sale transactions, fully or partially carried out in cash, since from January 1, 2024, payment will be made exclusively by bank payment instruments. Thus, if AADE auditors discover irregularities or undeclared funds transferred, buyers and sellers will be required to pay severe fines and will also be audited by the prosecutor’s office to determine the source of the funds.
However, according to AADE sources, cash transactions of the last five years are also under the microscope, as of the 338,511 property transfer declarations with a total value of €27.7 billion, 84,354 were reported to have been fully or partially issued using cash.
What does the new bill propose?
The bill, which is expected to be put to a vote before Parliament adjourns for recess, would, inter alia, stipulate that cash purchasers of property would pay fines ranging from 10,000 to 500,000 from 1 January 2024 euros, and the contract will be automatically cancelled.
The new provision included in the tax bill will provide the following:
- A real estate purchase and sale agreement that specifies down payment, partial or full cash payment is void and cannot be transferred.
- Violators are punished with a fine of 10% of the price paid in cash.
- The fine is minimum 10,000 euros and a maximum of 500,000 euros for each violation. For example, in the case of the sale and purchase of real estate worth 100,000 euros, the contract will be canceled and taxpayers will face a fine of 10,000 euros, which is 10% of the cash price (and is the minimum fine). Even if the purchase price is 5,000 euros, the fine will still be 10,000 euros.
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