Local taxes-New Fiscal code 2016

Local taxes

The new Fiscal Code stipulates that buildings will be taxed depending on the destination, not on the owner – natural person or companies, as it is now. Also, a new classification of the buildings will be introduced: residential, non residential and with mixed destination:

In case of residential buildings, owned by companies or natural persons, the local building tax will be 0.08% – 0.2% from the taxable value of the building;
In case of the non residential buildings, owned by companies or natural persons, the local building tax is 0.2% – 1.3% from the taxable value of the building;
In case of the buildings owned by companies that did not update its taxable value during the last three years, the building tax is 5%;
The local authorities are allowed to increase the local taxes by 50% comparing to the maximum levels set up by the Fiscal Code – currently they can increase them by 20%;
The Local Council of the cities are allowed to increase by 500% the value of the local tax on the neglected buildings and lands;
Starting 01.01.2017, each local tax will be automatically updated by the official inflation rate of the previous year – currently they are updated every 3 years.

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