Tenancy agreements for property are subject to a registration duty, the leasehold duty, which is covered by the tenant.
Understanding the process
The leasehold duty is calculated at a rate of 1% of the rent amount and the costs corresponding to the entire period for which the tenant occupies the property. You must pay the leasehold duty in full when you register your tenancy agreement contract.
You must register your tenancy agreement, under pain of penalties, within the three months which follow the signing of the contract.
Tenancy agreements lasting more than three years
If the tenancy agreement lasts more than three years (for example, tenancy agreements lasting six or nine years), you may request to pay in instalments split into periods of three years. In such cases, the leasehold duty is calculated and paid in accordance with the following terms:
- When the contract is registered, the 1% duty for the rent amount and the costs for the first three years is payable
- For each one of the periods which follow, a payment notice is delivered to the tenant at the beginning of the period
Renewal of the tenancy agreement
In the event that a tenancy agreement is renewed, the duty corresponding to the new tenancy period is settled on receipt of a payment notice delivered by the Department of Tax Services
In order to register your tenancy agreement, you must provide:
- A digital extract of the completed tenancy agreement
- Three original dated, signed and stamped copies of the contract
You must submit the documents for the registration of the tenancy agreement to the Registration and Stamps Division of the Department of Tax Services.
Then, you must pay the leasehold duty by cheque or in cash directly at the service desk.
In the event of the renewal of the tenancy agreement or payment in instalments of three years, a pre-filled payment notice will be delivered to your address by the Department of Tax Services.
The leasehold duty can be paid in cash, by cheque or transfer on the following account:
If you pay in cash or by cheque, on receipt of the payment notice, you must return the payment stub, accompanied by the payment, to the Department of Tax Services:
- Either in the post (for cheque payments)
- Or directly at the Registration and Stamps Division service desk (for cash or cheque payments)
If you pay by transfer, you must include the number of the tenancy agreement and the name of the tenant on the transfer notice. It is not necessary to return the payment stub.