New Property Tax

The new tax, provided for by Property Tax Law No. 196/2008, starts from January 2011.

It is an annual property tax due by the owner of a building at the rate of 10%. The tax is levied on the annual rent value of properties subject to the tax discounted by 30% to habitation use properties and 32% to the others.

A committee is created within each City. This committee is in charge of the valuation of each building.

Valuations will take into account location, quality of construction, provision of basic services and proximity to public parks, health and education facilities.

Properties are re-evaluated every five years.

The taxes will be paid in two instalments; the first by 30 June 2011, and the second before the end of the year.

The tenant is liable jointly with the owner towards tax authorities of the due property tax. However, the liability of the tenant is limited to the rent value.