During the first 4 years after implementing tax on land, all taxpayers will have a general deduction. You will get this deduction automatically.
Implementation of tax on land could lead to a sudden, high inrease of the tax to pay. To avoid this, tax on land is implemented gradully. This is done by applying a general deduction. When determining the taxable value of a parcel the general deduction is made from the appraised value according to the following formula:
Taxable value = Appraised value – General deduction
The general deduction is a certain percentage of the appraised value.The size of the deduction is decreased over the years as follows.
Year General deduction
2019 80% of appraised value
2020 60% of appraised value
2021 40% of appraised value
2022 20% of appraised value
From 2023 No general deduction
Legal reference: Article 7 of Law No. 06/L-005 On Immovable Property Tax.
Example
Rina owns a parcel. The appraised value of the parcel is 45,000 € in 2018. If the appraised value should not change over the coming years the general deduction and the taxable value will be as follows.
| Appraised value | General deduction | Taxable value | |
| 2019 | 45,000 | 36,000 | 9,000 |
| 2020 | 45,000 | 27,000 | 18,000 |
| 2021 | 45,000 | 18,000 | 27,000 |
| 2022 | 45,000 | 9,000 | 36,000 |
| 2023 | 45,000 | 0 | 45,000 |