The government is working on the details of a new real estate property tax that will affect all 5.569.000 homeowners for life. The tax will have 33 different rates, according to location and type of building. Along with the taxation of farmland, the government hopes to collect 2.7 billion euros.
Homeowners in areas where objective values are up to 2000 euros per square meter will pay less tax. Property with an objective value up to 750 euros per square meter will see the greatest reduction (21%). Owners of property with an objective value over 2,000 euros per square meter will see an increase in their taxation.
It remains to be seen if the objective values will rise in areas where they are far lower than market value. If the rates do not change, there is a good chance that homeowners will pay more tax. In any case, the 50% to 60% reductions announced by the Ministry of Finances are unfeasible.
Farmland will be taxed with 1 to 3 euros per acre for professional farmers, while for everyone else the tax will be doubled. Property in high-valued areas outside city planning zones will be liable for greater taxes. Real estate property of businesses will be taxed with a 0.2% rate if they are used by the business and a 0.4% if the property generates income for the business.
