The property tax for 2024 is expected to be less painful for property owners compared to the previous year. After a record increase in the rental value, which accounts for half of the tax, of 7.1% in 2023, the government has only increased it by 3.9% this year. This increase in rental value mechanically raises taxes in almost all municipalities. The other half of the tax depends on the rate set by each municipality, with some seeing significant increases while others see reductions.
A total of 1,009 municipalities have increased taxes by 5% or more, with only 261 increasing them by more than 10%. The amount of the tax depends on the value of the property and the decisions made by local governments. The property tax is a generic term encompassing a set of taxes (on built properties, unbuilt properties, and household waste collection) that has been in place since the early 20th century, although variations have existed since ancient times. This tax only applies to property owners, whether they reside in the property or not.
In addition to the property tax, the tax on dwellings, payable by all residents, whether tenants or property owners, had been in place until it was completely abolished for primary residences on January 1, 2023. The property tax amount depends on both the market value of the property and the taxes that local authorities (municipalities and intermunicipal communities) wish to collect. Since 2011, regions can no longer claim a share of the property tax, and since 2021, municipalities receive the portion that was previously allocated to departments, with the state committing to fully compensate for any lost revenue resulting from the abolition of the dwelling tax.
The calculation is based on half of the rental value of the property, which is revised annually by the Ministry of Economy to account for inflation. A more comprehensive reform is planned for 2028, which will include the value of the sector or the area in the calculation. The tax rate set by each local authority is then applied to this base, determining the final amount of the property tax. Overall, property owners can expect a slightly less burdensome property tax for 2024 compared to the previous year, with variations in rates and amounts depending on the municipality.
