Stamp duty must be paid on the consideration or market value of the estate interest transferred, whichever is greater, at BSD rates. Please see examples 1 to 3 below to calculate stamp duty for leases on a tiered lease or a percentage of GTO. Read also: Leases are fully digital with Housing.com Tom agrees to pay Mary the market value of €20,000 to take over the lease. Once the agreement is concluded and signed and if the lease is less than one year, the document can be certified by the notary and if the lease is longer than one year, it must be registered with the local sub-registrar to make it legally enforceable in the event of a dispute. A registered lease retains more probative value than a notarized lease. « Why register leases? » A premium lease is a lease for which there is a lump sum payment. Stamp duty must be paid on the premium on the basis of BSD rates. If, in addition to the premium, rent is made, the rent must be paid by stamp duty based on the tax rates of the lease. The question now is what is the stamp duty that must be paid on leases or leases. The enabling law contains the formula or formula for calculating the applicable percentages. We have tried to simplify the same with a rental value of N1.000.000,00 (for our friends who stay away from mathematics) as follows: If a tenant transfers (transfers) the lease to another person, stamp duty must be paid on the order. They treat assignments in the same way as a real estate purchase. However, in case of reduction of the rent or reduction of the duration of the rental, the document does not have to be paid.
Therefore, if you are looking for a rented house, apartment or house or you live in a house, you need to register the same and pay stamp duty. Location is the main factor in estimating the value of buffer paper. The duration of the agreement also plays a role. Stamp duty on short- and long-term leases varies from state to state. In addition, your annual rent is also a factor, especially for commercial leases. Section 17 of the Registration Act 1908 makes it compulsory to register a lease Section 17 (1) (d) rental of immovable property from year to year or for a period exceeding one year or the reservation of annual rent; Either the landlord or the tenant can buy the stamp paper and he will continue to be the buyer….