What is real estate transfer tax?
Real estate transfer tax is a tax that must be paid when there is a transaction to transfer land use rights, house ownership rights or assets attached to land. This tax is stipulated in the Law on Personal Income Tax, and the specific taxable subject is the transferor (seller).
Transfer tax includes 2 items:
- Personal income tax (PIT): collected at a certain rate
- Registration fee: collected according to the property value (buyer is responsible)
What will change in real estate transfer tax from July 1, 2025?
According to current regulations at Personal Income Tax Law 2007 (amended and supplemented in 2012) and Decree 65/2013/ND-CP, the transfer tax for individuals is still applied at 2% of the transfer value. However, from July 1, 2025, it is expected that there will be an adjustment in the minimum taxable price to avoid "tax evasion" by recording low prices in contracts.
Transfers between family members (parents - children, husband and wife...) are still exempt from tax according to the provisions of Article 4 of the Law on Personal Income Tax.
How to calculate the latest land transfer tax 2025
General formula:
| Personal income tax = Transfer price x 2% |
In which, the transfer price is determined as the higher value between:
- Price stated in the transfer contract
- Land price list issued by Provincial People's Committee
Example:
- Case 1: Land for sale at 2 billion, contract states 1.5 billion → Taxable price is 2 billion x 2% = 40 million
- Case 2: Giving land to children, value 3 billion → Tax exempt because it is subject to the provisions of the Personal Income Tax Law
Real Estate Transfer Tax for Individuals: What You Need to Know
Individuals with income from real estate transfers are required to pay tax, except in cases of tax exemption according to regulations. To be exempted, individuals must provide legal evidence and submit sufficient documents proving family relationships.
If the value is not declared correctly or if the tax is deliberately evaded, the individual may be fined and forced to pay additional taxes.
How much is the real estate transfer tax?
As of 2025, the transfer tax rates for individuals are:
- Personal income tax: 2% transfer value
- Registration fee: 0.5% transfer value (paid by buyer)
| Transaction Type | Personal Income Tax | Registration fee |
|---|---|---|
| Buy and sell houses/land | 2% | 0.5% |
| Give to relatives | Tax Free | Free/0.5% |
| Give to strangers | 10% or as per new regulations |
How to declare real estate transfer tax?
To fulfill tax obligations when transferring real estate, taxpayers need to prepare complete documents according to regulations. Specifically, in the personal income tax declaration dossier, it is required to have declaration form 03/BDS-TNCN, a notarized copy of the transfer contract, identity card or citizen identification card, along with the pink book or land use rights certificate. In case of requesting tax exemption due to transfer between relatives, it is necessary to provide additional documents proving the personal relationship, such as household registration book, birth certificate or marriage certificate.
After completing the application, the individual submits it directly to the tax office where the real estate is located. Within 3 to 5 working days, the tax office will send a tax notice, determining the amount payable. Once the tax obligation is completed, the payer brings the receipt to the land registration office to carry out the name change procedure.
In addition to direct submission, people can now also declare online via the General Department of Taxation's electronic information portal at the address https://thuedientu.gdt.gov.vnUsers only need to log in to their registered account (personal or notary office), upload scanned documents and perform digital signature authentication. This method not only saves time but also helps control documents more conveniently, especially in big cities where real estate transactions are always high.
Conclusion and recommendations:
Real estate transfer is not only a property transaction but also a legal procedure associated with mandatory tax obligations. Understanding the regulations, making correct declarations and determining the correct tax value are key factors to avoid legal risks and administrative penalties. In particular, from July 1, 2025, many new regulations will come into effect, requiring both individuals and businesses to proactively update and prepare early.
In the context of increasingly tightening tax policies, working with a professional tax consulting unit like MAN – Master Accountant Network will help you save time, limit errors and ensure tax records are processed quickly and legally.
