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Tax charges are an important expense in real estate transactions. For home buyers, it is important to understand the differences in taxes and fees between new and second-hand homes. These differences in taxes and fees are described in detail below。
The main taxes and charges involved in the new housing transaction are tax dues, maintenance funds, etc. The tax is determined on the basis of the size of the house and whether the buyer is the first home. The tax rate is 1 per cent if the buyer buys the first flat and the size of the house is 90 square metres or less, and 1. 5 per cent if the house is 90 square metres or more. For the two apartments, the tax rate is 1 per cent for an area of 90 square metres or less and 2 per cent for an area of over 90 square metres. The maintenance fund is used for the maintenance, upgrading and renovation of public buildings and common facility equipment after the expiry of the warranty period. The contribution rates vary from place to place and are generally charged at a percentage of the total house price, usually between 2 and 3 per cent。
The second-hand house transactions involve relatively complex taxes and charges, mainly in the form of deed tax, value added tax, personal income tax, etc. The tax is levied on a basis similar to that for new homes. In the case of vat, vat is paid in full at the rate of 5 per cent if the right to housing is granted for two years. The collection of personal income tax is more varied, and if the seller is able to provide proof of the original value of the house, personal income tax is paid on the basis of 20 per cent of the proceeds of the transfer of the house or, if not, on the basis of 1 per cent of the transaction price of the house. However, if the house is the sole home of the seller's family and holds it for more than five years, it is exempt from personal income tax。
In order to more clearly compare the tax differences between the new and second-hand homes, the following is a simple table:
In the light of the above, there is a clear difference in taxes and fees between the new and second-hand homes. In choosing whether to purchase a new house or a second-hand one, the buyer, in addition to taking into account the house itself, needs to take full account of the cost of taxes and fees and make reasonable decisions in the light of his economic situation and the need to purchase the house。
