Does anyone know if the Non-Resident Income Tax (IRNR) is actually attached to the property? I am in the process of purchasing a resale apartment. The vendor, apparently, has never paid this tax for the past 8 years. I am particularly concerned that I might end up paying this (plus the fines) once I become the new owner.
In theory, you don’t to worry about this. When you buy, you pay a retention of 3pc to the tax authorities to cover unpaid taxes of the vendor. They deduct outstanding taxes from that, then pass on the difference (if any) to the buyer. Which is not to say the property might not have some tax-related charges or embargoes on it. Be sure to check this out by getting a nota simple from the property register. And consult a lawyer to be on the safe side.
Thanks a lot, Mark. Your answer makes me feel better. I will also be getting a Nota Simple on-line as you explain in another post.
I do actually have a lawyer, but so far he has not been useful at all. I discovered that he “forgot” to check many things during the due diligence and will not even answer simple questions (despite being a fully qualified conveyancing lawyer). He has probably no time for me… Very disappointed…
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