Consult a specialist
Login
English
Currency: EUR

PUBLISH ADS
FOR FREE

CHAT WITH US
Messenger or WhatsApp

WE OFFER 24/7 SUPPORT
Ministry of Justice proposes to abolish primary housing tax from 2022
Ministry of Justice proposes to abolish primary housing tax from 2022

For some, real estate tax will be abolished, for others it will increase significantly from 2022

The meeting of state secretaries approved the proposal of the Ministry of Justice to abolish real estate tax on primary housing up to 100 thousand euros. The amendments to the law on real estate tax proposed by the Ministry of Justice suggest exemption from real estate tax on primary housing worth up to 100 thousand euros, and apply a non-taxable minimum to primary housing over one hundred thousand euros. Tax rates are not planned to be changed yet.

“Mathematically, it looks like this: if the cadastral value of housing is 50 thousand euros, then the tax will be 0. If the cadastral value of housing is 200 thousand euros, real estate tax is calculated from 20 thousand euros. That is, 20 thousand euros are taken away from 200 thousand euros, as an exempt minimum, and a coefficient of 0.2 is applied to the remaining amount. This coefficient will remain in order to maintain the progressivity of taxation, that is, if housing is more expensive than 100 thousand, then the tax rate will be higher. At the same time, in relation to primary housing, the tax will be significantly reduced and will not increase the burden on the owners ”,

explains the representative of the Ministry of Justice Aldis Buks. Primary housing, as explained by the Ministry of Justice, is the property of the person in whom it is declared. Recall that earlier there were calls in society to abolish the tax on single housing. But since many people have several real estate properties, they would be automatically denied discounts. Therefore, the Ministry of Justice decided to introduce the concept of primary housing, which applies to benefits, and for the rest of the real estate, if any, the previous taxation procedure is maintained.

For land under the house, the procedure is similar - it is proposed to introduce a tax-free minimum of 10 thousand euros when calculating the land tax. That is, if the land under the house is not more than 10 thousand, you do not need to pay a tax. Since real estate tax revenues are a decent income for local governments, the question arises as to who will compensate municipalities for lost tax revenues.
2020, 9 March
 
All rights reserved Terms of Use and Privacy Policy