Exemption from PCC (Civil Law Transaction Tax) – When Does It Apply and How Does It Work at the Notary?

Exemption from the Civil Law Activities Tax – When Can It Be Applied?

The Civil Law Activities Tax (PCC) is a fee applicable to certain transactions, such as the sale of real estate, loan agreements, or exchange agreements. However, there are situations in which an exemption from this tax can be utilized. Below, we present the most important information on this topic.

What activities are subject to PCC?

The Civil Law Activities Tax applies to, among others, the following transactions:

  1. sale of real estate,
  2. loan agreements,
  3. exchange agreements.

When is an exemption from PCC granted?

An exemption from the Civil Law Activities Tax is available in several cases:

  1. Sale agreement for a first residential property:
  2. The exemption applies if the real estate is purchased for residential purposes and the buyer has not previously owned another residential property.
  3. Agreements concerning real estate purchased from a municipality:
  4. When purchasing building plots or apartments from municipal resources, an exemption may also apply.
  5. Agreements related to acquiring residential premises through a housing cooperative:
  6. Acquiring rights to a residential unit in a housing cooperative may be exempt from PCC.

How to apply for the exemption?

To take advantage of the PCC exemption, specific conditions must be met, and the relevant documents must be submitted to the tax office. It is also advisable to consult a lawyer or notary to ensure all formalities are properly completed.

Summary

Exemption from the Civil Law Activities Tax can significantly reduce the costs associated with various transactions. It is worth being aware of the available options to make use of them. If you need more information or assistance regarding PCC, contact our notary office. Our experts are happy to answer your questions and help you complete all the necessary formalities.