Single tax on all real estate

Within the next year the government will proceed with unifying real estate taxes into one single tax.

 

The Finance ministry is promoting the elimination of Property Tax (FAP) and the real estate hike (EETIDE), and their merging into a single property tax, of similar collection results to the removed taxes. This means that it should bring at least 3 billion euros per year to the Finance ministry.

 

To achieve this goal officials are planning for this new tax to be imposed also on properties that are currently exempted, such as agricultural fields and areas outside urban planning, city or settlement limits.

 

According to information, the single tax will even include areas where solar systems have been installed. However, there will be an exemption for agricultural land owned by people whose main occupation is farming.

 

The imposition of a single tax on real estate ownership will be accompanied by the elimination of the:

 

- special property fee through electricity bills that burdens houses and buildings in commercial use

- Real Estate Tax

 

According to a proposal developed by the Finance ministry, the single tax will include land that falls outside urban planning limits, that is fields, farmlands and pastures, which are currently exempted. Moreover, the replacement of the hike and the Real Estate Tax with one single tax will result in the elimination of the 200,000 tax-free limit, so every owner will be taxable from the first euro of value of their property.