When becoming the owner of real estate, we encounter a new tax – property tax. The tax is paid by owners of buildings, parts of buildings, apartments, garages, places for rest or recreation.
In practice, property tax is encountered immediately after the purchase of real estate. The financial administration usually sends a notification about the obligation to declare and pay property tax together with the assessment of real estate transfer tax.
Every owner is responsible for paying the tax, regardless of whether he uses the property himself, his family members use it or he rents it out.
Obligation to pay property tax
The property owner must submit the tax return within 15 days of acquiring the property. If the owner acquires the property by means of a sales contract, he must submit it within 15 day after the conclusion of contract. If the owner builds the property, the date of issuance of the use permit is relevant.
The Financial Administration assesses property tax on the basis of official data or the taxpayer’s declaration. The tax is assessed by decision by March 31 for the current year.
Exceptions
The tax is assessed based on the value of the property according to the points system. The basis for payment of property tax is reduced by an amount corresponding to the value of 160 m2 of residential area, provided that the owner or his immediate family members live in the property. Only spouse, children and adopted children are considered immediate family members.
In addition to the main exemption, there are additional exemptions. The payment of the tax is temporarily (for a period of ten years) exempted for the first owners of new residential houses or apartments. The same applies to repaired or renovated residential houses or apartments, if their value has significantly increased as a result of the renovation.
Another exception applies to owners with several family members – if the owner has more than three family members whom he is obliged to support, the assessed tax for each family member is reduced by 10%. In this context, the following are considered family members: spouse, children, adopted children, parents of the owner and spouse, as well as others, if the owner is obliged to support them by law.
