Primary residence deduction

You can have a deduction of 15,000.00 € from the appraised value if the property is registered as your primary residence.

You can have a deduction of 15,000.00 € from the appraised value if the property is registered as your primary residence.

If you are the liable taxpayer of the object unit that you use as your primary residence, you are entitled to a deduction when determining the taxable value. To get the deduction you must do two things:

  1. Register your personal number in the property tax registers
  2. Register the object unit as your primary residence. This must be done at the latest on November 30 the year before the tax year. You can do it in your Municipal Property Tax Office.

Use the form Self-Declaration for Primary Residence.

The deduction is 15,000.00 € for the object unit. If you only have a share of the object unit, you can have a deduction in proportion to your share. If the owner of the other share also use the object unit as primary residence the total deduction for the property will be 15,000.00 €.

You can only have one primary residence in all of Kosovo. If you have registered more than one primary residence, you will have to pay a fine of 100.00 €.

If the appraised value of your object unit is lower than the primary residence deduction the remaining part is deducted from the parcel unit where the object is located. This is only applied if the parcel unit and the object unit have the same liable taxpayer.

Legal reference: Article 11 and 35 of Law No. 06/L-005 On Immovable Property Tax.

Example – Primary residence deduction, 3/4 share

Besa owns an object unit with her sister. She use it as her primary residence. She registered this in the Property tax registers before November 30 the year before the tax year. Besas share is 3/4.

TotalBesas share
Besas share of object unit3/4
Appraised value of object unit50,000.00 €37,500.00 €
Primary residence deduction11,250.00 €
Taxable value26,250.00 €

Calculation:

As Besa only owns 3/4 of the property her maximum primary residence deduction is 11,250.00 € (3/4 of 15,000.00 €)

The taxable value of Besas share of the Object unit will be 26,250.00 € (37,500.00 € – 11,250.00 €).

If Besa’s sister also uses the property as her primary residence the total primary residence deduction for the property is 15,000.00 €. 11,250.00 € for Besa and 3,750.00 € for her sister.

Example – Object unit has an appraised value under 15,000.00 €

Flaka owns 1/1 of a property. The property consists of one parcel unit and one object unit. Flaka lives in the object unit and she registered it as primary residence before November 30 the year before the tax year.

Assumptions:

Appraised value of object unit 12,000.00 €
Appraised value of parcel unit 10,000.00 €
Primary residence deduction 15,000.00 €

Calculation:

Since the value of the object unit (12,000.00 €) is lower than the primary residence deduction (15,000.00 €), the remaining part of the deduction (3,000.00 €) will be deducted from the appraised value of the parcel unit.

Taxable value of object unit: 0
(12,000.00 € – 15,000.00 €)

Flakas remaining primary residence deduction: 3,000.00 €
(12,000.00 € – 15,000.00 €)

Flakas taxable value of parcel unit: 7,000.00 €
(10,000.00 € – 3,000.00 €)