According to senators, this tax is immoral because in the vast majority of cases, real estate is purchased with money that has already been subject to income tax. As Vinegret.cz notes, last year the real estate acquisition tax brought 13.6 billion crowns to the treasury.<\/p>
"These 4% significantly increase the cost of real estate. Current high prices and rising mortgage rates are already making housing unaffordable for an increasing number of citizens. Moreover, the tax itself is immoral. In essence, it is levied twice and 'punishes' people simply for wanting to buy a home," said Senator Zdeněk Nytra.<\/p>
"This is the embodiment of idleness of financial authorities who are too lazy to monitor proper tax payment in other areas. They rob real estate buyers only because it is easiest to get money from them," added Senator Tomáš Goláň.<\/p>
In the argumentation of their proposal, the Senate pointed out that on the one hand, the state tries to support affordable housing programs, and on the other hand, it itself trips up people who have been saving for their own corner for years.<\/p>
Note that until 2014, this tax was called daň z převodu nemovitostí ("real estate transfer tax") and was levied on the seller. However, the authorities then changed the rules, and since November 2016, this burden has been shifted to the buyer. The tax applies to the secondary market and is not paid when purchasing new buildings.<\/p>