Beware of Those Who Declare Incomplete in the Deed! A New Circular Has Arrived from GIB In real estate sales, the incomplete display of the actual sale price in the title deed may now face serious sanctions. The Directorate of Revenue Administration (GIB) has published a new internal circular that directly concerns those who sell real estate, especially in 2024 and 2025. Together with this circular, the procedures to be applied for those who declare the missing price in the deed have been clarified. Which Sales Are Covered? The circular covers housing, land, workplace and land sales. Dec. GIB, in the letters sent to many taxpayers, informed that it had found that the real estate sale price was shown below the actual market value, and confronted citizens with the warning “pay the difference in fees and penalties”. What Does the New Circular Say? A new regulation on land registry fees entered into force with the internal circular sent to all tax offices on May 22, 2024. Significant advantages were introduced for those who declared with regret. A New Application For Those Who Declare With Regret: Tax loss penalty will not be applied The penalty for irregularity will not be discontinued Only the tuition difference will be taken A regret increase of 4.5% per month will be applied to the difference in tuition fees What Does This Mean? Taxpayers who realize that they have declared a missing price will be able to fulfill their obligations without facing severe penalties if they report the situation spontaneously with regret. However, if the transaction is initiated ex officio after the determination made by the GIB, tax loss and irregularity penalties come into play. Warning from CEESS Global: If you have recently completed a real estate sale and have shown the sale price below the market value, we recommend that you contact a financial advisor or tax advisor without delay. Making accurate and transparent statements both reduces the risk of criminal proceedings and prevents legal problems that may be encountered in the future.