The real estate transfer tax, commonly known as the welcome tax, is a duty that buyers of a property must pay when acquiring real estate. This tax is calculated based on the higher of the purchase price or the market value of the property. It is imposed by municipalities and is generally due within a few months following the transaction. The transfer tax is intended to cover the administrative costs associated with changing the property owner in the land registry and also contributes to local finances. Rates vary by municipality but are typically progressive, increasing with the value of the property.