Tax
Progressive personal income tax, corporate income tax and no general property tax
Residents pay progressive personal income tax on worldwide income, with a schedular treatment of capital income. Companies pay corporate income tax, and there is a real-estate transfer tax but no comprehensive annual property tax.
Key rules
- Residence is based on registered permanent address, habitual abode or centre of interests.
- Capital gains rates decrease with the holding period of the asset.
- Real-estate transfers attract a transfer tax where VAT does not apply.
Governing law
- Personal Income Tax Act (ZDoh-2)
- Corporate Income Tax Act (ZDDPO-2)
In practice
Attempts to introduce a general property tax have repeatedly been struck down, so the current charge remains the older building-use fee and transfer tax.