The drafting process has already been launched and is expected to be presented publicly in 2-3 months. This was announced by Finance Minister Andrian Gavrilita after a government meeting on February 4.
Currently, the property tax, which is also called “luxury tax”, applies to real estate with an estimated value equal to 200 average salaries, as well as to residential houses with an area of more than 120 square meters. As the minister noted, the criteria will be revised. At the same time, he emphasized that the changes should not affect people with low incomes.
“The parameters of the value taken into account in the amount of salary, area, as well as tax rates may be revised. We will still come back to this issue,” Gavrilita specified.
Controversial points
The most controversial for taxpayers since the introduction of this tax in 2016 remain the definitions of its subjects and taxable base. Especially in cases where several people or families live in the house.
During this time, the Constitutional Court has had to consider taxpayers’ requests for property tax more than once.
At the moment, the Tax Code stipulates that if the real estate subject to this tax is in common shared ownership (use) of several persons, then the subject of taxation is recognized as each of them, in proportion to its share. If it is in common joint ownership, the subject of taxation is recognized as one of the owners. But in this case all of them are jointly and severally liable for fulfillment of tax obligations.
Unlike the real estate tax, which is directed to local budgets, the “luxury tax” is paid to the state budget.
