Debt-free price vs. sale price: what an apartment really costs

What the debt-free price means

Debt-free price = sale price + share of the company loan (the debt share). The sale price is the part you pay directly; the debt share is the apartment's portion of the company's loan.

Two apartments can look different by sale price but be practically the same by debt-free price.

Debt share and the company loan

The debt share can usually be paid off at once or amortised through a monthly finance charge. A large company loan lowers the sale price but raises the charge.

The exact debt share and its repayment schedule are in the manager's certificate — request it before making an offer.

Why you compare the debt-free price

Only the debt-free price makes properties comparable. The sale price alone can give a false impression of affordability if a large company loan sits behind it.

Always also calculate the monthly costs: the maintenance charge (benchmark ~€5.5/m²/mo) and any finance charge together.

Debt-free price and tax

The transfer tax on housing shares (1.5%) is calculated on the debt-free price, not just the sale price. This is worth accounting for in the budget.

A large debt share therefore also increases the tax payable, even if the sale price is low.

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Where do I see the debt share?

In the manager's certificate and the sales brochure. It is the apartment's portion of the housing company's loan.

Is the tax on the sale price or the debt-free price?

The transfer tax (1.5%) is calculated on the debt-free price, i.e. the sale price plus the debt share.

Is it worth paying off the debt share?

It depends on the company loan's interest versus your own loan interest. Compare the finance charge with the cost of your own loan.