Tax Authorities Investigate Real Estate Transfers
The tax authorities have initiated an extensive investigation into numerous real estate transfer contracts to pinpoint instances where properties—be it houses, land, offices, or shops—were transferred without the payment of the property tax (ENFIA). The objective is to ensure that all purchases, sales, or inheritances of real estate come with the necessary documentation proving that recent tax obligations have been settled.
The ongoing audits primarily focus on real estate slated for transfer in 2024. The tax authorities are assessing whether the fundamental legal requirement, specifically the possession of an ENFIA certificate, has been fulfilled. This certificate is essential as it accompanies every transfer deed, confirming that the owner has either paid the taxes due during the previous five years or is legally exempt from doing so.
This verification process is conducted remotely through the Compliance and Taxpayer Relations Departments, as well as the Capital Taxation Center. Auditors from the Independent Agency for Revenue (AADE) employ advanced risk analysis systems that electronically review remittance data. This technique utilizes both internal and external data, combining information already held by AADE to discern suspicious cases, including transfers lacking the required documentation or containing incomplete data.
According to official statistics, over 211,000 real estate transfer tax returns and approximately 111,700 inheritance tax returns were submitted via the myPROPERTY platform in 2024. This highlights the significant workload the tax authorities face in their auditing efforts. By law, property ownership cannot be transferred without an ENFIA certificate attached. Notaries must provide this certificate for all transfer acts or the establishment of real rights. It validates that the property has been included in the ENFIA filings over the past five years, and confirms that the taxpayer has paid taxes or has a legal exemption. If a certificate is issued after the current year’s ENFIA notification, its validity will extend for six years, inclusive of the transfer year.
Certificates are also mandatory for inheritances. Without one, notaries cannot create the inheritance approval deed. For the years when the heir had tax liabilities, the tax office will only issue a certificate if the corresponding taxes have been paid or if there’s a legal exemption in place.
