The Deadline for Applying for Property Tax Exemption is Approaching

In order to be exempt from paying property tax under one of the prescribed legal exceptions, citizens and entrepreneurs must submit to the Tax Administration by the end of March the reasons for which they seek exemption.

Namely, if the property is intended for permanent residence (if a person without a registered residence/living address resides in it or if a lease agreement has not been registered with the Tax Administration), if the property is unsuitable for residential purposes due to the declaration of natural disasters, if residential use is disabled in the property (without infrastructure, compromised structure, without a roof, etc.), if the property has a public purpose or is intended for institutional accommodation of persons, if it is intended for sale or taken in exchange for unpaid claims (if less than six months have passed from the date of entry into the business books or from the date of acquisition until March 31 of the year for which the tax is determined), according to the Local Tax Act no tax is payable, but this must be reported to the Tax Administration by entrepreneurs and citizens, along with supporting evidence.

– For easier identification of which data citizens and entrepreneurs must provide to the competent tax authority for the determination and collection of property tax, and for the purpose of reporting data essential for taxation or reporting data for the purpose of exemption from property tax, a unified application form for citizens and entrepreneurs is available on the Tax Administration’s website. Taxpayers only fill in the data specified in the Application, including data about the taxpayer who owns the property, and then data about the residential property if there has been a change in the taxable area or purpose of the property. Likewise, the taxpayer reports the residential property for which they can obtain the prescribed legal exemptions from paying property tax – explains the Tax Administration.

The application must be submitted by March 31, 2025, according to the location of the property. If the Tax Administration is designated as the competent tax authority for the determination and collection of property tax, this application form can be filled out via eTax starting February 24, 2025. Its availability via mTax is also planned for March 2025. In this way, the Tax Administration aims to encourage taxpayers to report data essential for taxation or data essential for exemption from property tax, thus enabling them expedited and facilitated access to submit this data.

– Citizens are not required to submit data essential for taxation for properties for which a utility fee is paid, as well as for properties that are rented based on a lease agreement that has been reported to the Tax Administration for income tax purposes – states the Tax Administration.

In short, if you have submitted a lease or rental agreement to the Tax Administration for another (or any other) property, or if you live in your own property (and have registered residence there), you do not need to send an application or data to the Tax Administration because no tax is payable for properties that serve for permanent residence or are rented based on a lease for permanent residence, as the Tax Administration will obviously match the data on residence and utility fees.