General deduction

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.

Appraised value

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 valueGeneral deductionTaxable value
201945,00036,0009,000
202045,000 27,00018,000
202145,000 18,00027,000
202245,000 9,00036,000
202345,000 045,000