Tax on real estate acquired by an individual for the first time

The initiative to amend the law “On the Fundamentals of the Tax System in the PMR” was made by deputies of the Committee on Economic Policy, Budget and Finance Viktor Guzun and Vadim Kravchuk. They consider that the changes being made will encourage individuals who are not residents of the Pridnestrovian Moldavian Republic to purchase real estate in the republic.

The current version of the law contains currently a list of taxes and fees included in the local tax system. This includes a fee for the acquisition of real estate. It is paid by non-residents upon state registration of ownership of real estate in the amount of 10% of the amount of the contract of sale or donation of real estate.

The authors of the legislative initiative propose that the fee established for the acquisition of real estate should not be levied on non-residents of Pridnestrovie when purchasing an object of real estate for residential or non-residential purposes, which is the subject of a transaction in which an individual is the buyer for the first time.

Such a norm was already adopted by the Supreme Council in 2022. Deputies have clarified that it applies to individuals with the current changes.

Parliamentarians proposed not to extend this rule to the purchase of real estate on the secondary market. Deputies supported the initiative. The law-in-draft was adopted in two readings at once. It will come into force upon the signing on the day following the day of official publication.