This is the argumentation for the changes given by Finance Minister Andrian Havrilice. “We are talking about updating the methodology of tax collection, but at the moment the document is still in the works. I think we will have updates and answers to this question in the near future,” the minister explained.
He did not give a clear answer to the question of whether the tax will increase, noting that the aim is to adjust it.
“It’s not so much that taxes will increase, but probably that City Halls will be able to set them more accurately, to the extent that they should be levied. The problem exists: in many cases there are land and real estate parcels that are not delineated, not assessed, which creates difficulties for the mayoralties in collecting what they consider fair. Based on this, the legal framework and methodologies need to be updated. The final decision will be up to the local authorities, which will set the coefficients and tax amounts, which will lead to a more transparent reality,” the minister said.
It should be noted that the real estate tax in Moldova is a compulsory local tax, which is calculated on the basis of the value of land plots, buildings, structures, apartments and other premises. Its amount is determined annually by local authorities within the limits established by the Tax Code.
Currently, according to Article 280 of the Code, the minimum tax rate is 0.05% for residential houses, household plots, garages and garden plots; 0.1% for agricultural land with buildings and 0.3% for other types of real estate, except for garages and garden plots.
