The benefit was prepared by the deputies of the faction of the party “Democrația Acasă”. According to it, it is proposed to supplement Article 283 of the Tax Code, which regulates exemptions from real estate tax, with a provision on the introduction of this benefit for the purchase of the first dwelling. According to the authors, it is often the only one in Moldova and is not of commercial or investment nature.
In particular, we are talking about housing with a total area of up to 150 m², owned or jointly owned by an individual, which is used exclusively as a primary residence.
However, according to the government, without a clear and fixed in the legislation definition of the concept of “first dwelling”, the introduction of exemption from real estate tax for it may lead to differences of interpretation concerning the chronology of the purchase of housing, the presence of other real estate objects at the physical person, as well as the preservation of the right to exemption in the subsequent acquisition of housing.
The conclusion of the Cabinet of Ministers notes that the explanatory note to the draft lacks an analysis of the impact of this measure on the revenues of local budgets, as well as an assessment of losses. Compensatory sources to cover them are also not specified.
At the same time, the Cabinet of Ministers repeats its earlier intention to return the maximum real estate tax rates to the Tax Code. Recall, they were abolished from January 1, 2023.
This measure will be included in the package of changes on tax and customs policy for 2027. It is also proposed to transfer to local authorities the authority to determine the categories of individuals who could take advantage of benefits when paying this tax.
