Reduction of the Taxation on Real Estate
On the 14th of July 2016, the Parliament, passed by majority a bill, which provides that the imposed taxation on real estate for the year 2016 will be 25% of the taxable amount resulting from the applicable tax rates on the value of the real estate as on the 1st of January 1980. That means that, the citizens, should pay 25% of the tax they’ve paid last year. The discount, however, at the rate of 75%, applies only under the condition that the taxpayer will pay the real estate’s tax at the rate of 25%, until the 31st of October 2016.
In case that the payment of the due taxation will be conducted between the 1st of November 2016 and the 31st of December 2016, the imposed taxation will be charged with an additional 2.5% and the taxation payable will be 27.5% of the taxable amount resulting from the applicable tax rates on the value of the real estate as on the 1st of January 1980.
If the due taxation will be conducted after the 31st of December 2016, then the imposed taxation will be charged with an additional 10%, having as a result the taxpayer to be required to pay 37.5% of the tax paid last year, which results from the applicable tax rates on the value of the real estate as on the 1st of January 1980.
As already mentioned, the taxable values of the real estates are based on the estimations of 1980’s and last year’s rates will apply before the discount was given, as the following table:
|
1 – 40,000 |
40,000
– 120,000 |
120,000
– 170,000 |
170,000
– 300,000 |
300,000
– 500,000 |
500,000
– 800,000 |
800,000
– 3,000,000 |
3,000,000 + |
|
6 ‰
|
8‰
|
9‰
|
11‰
|
13‰
|
15‰
|
17‰
|
19‰
|
According to the current legislation, the taxation on real estate will be abolished, starting from the 1st of January 2017, for the tax year 2017 and for every year thereafter.
|
Taxation on Real Estate 2016 (Deadline–31/12/2016) |
|||
| Value of the Real Estate (01/01/1980) |
Payable until 31/10/2016 |
Payable until 31/12/2016 |
Payable after 31/12/2016 |
| 40,000 | 60 | 66 | 73 |
| 100,000 | 180 | 198 | 218 |
| 200,000 | 415 | 457 | 502 |
| 300,000 | 690 | 759 | 835 |
| 500,000 | 1,340 | 1,474 | 1,621 |
| 1,000,000 | 3,315 | 3,647 | 4,011 |
| 5,000,000 | 21,315 | 23,447 | 25,791 |
For any further information on the payment of real estate taxes, contact us now for a free consultation.