New Property Tax: How Will It Affect Owners and the Market? | Alfa Elmas

Table of Contents

• Introduction
• 1. What is the New Property Tax?
• 2. Impact on Property Owners
• 3. Impact on the Real Estate Market
• 4. How to Prepare for the New Tax?
• Conclusion

 

Introduction

The new property tax, set to take effect in 2025, is sparking significant discussions among property owners and investors. This reform introduces changes in the taxation of properties, with impacts expected to be felt by owners and the entire real estate market. This article provides essential information about the new tax, its effects, and the steps you can take to adapt to these changes.




 

1. What is the New Property Tax?

Introduction and Goals of the Law

The new law introduces property taxation based on market value, replacing previous forms of taxation such as municipal fees. The goals of this tax include increasing local revenues and creating a fairer taxation system.

How is it Calculated?

The tax is calculated based on:

• Property value.
• Location (urban zones have higher rates).
• Purpose (residential, commercial, or tourist). Learn how to prepare your property for optimal taxation.

These factors should be carefully analyzed to understand your future tax burden.

Who is Affected?

The tax applies to all types of properties, including:

• Residential properties.
• Commercial spaces.
• Holiday homes and unused properties.

Owners will need to keep up with changes to understand their specific obligations.

 

2. Impact on Property Owners

Financial Burden

Owners of multiple properties will face increased costs, particularly those with properties in urban areas or of high market value.

Reliefs and Exemptions

Reliefs are available for specific groups, such as retirees and persons with disabilities. Inquire about available exemptions to reduce your tax burden.

Owner Adaptation

Strategies include:

• Optimizing property portfolios.
• Long-term renting or selling properties.
• Using properties for additional income through tourism.

Adapting to these changes is crucial to reducing financial pressure.

 

3. Impact on the Real Estate Market

Changes in Prices

A stabilization or even decrease in prices of luxury properties is expected, while affordable properties may maintain high demand.

Supply and Demand

Foreign investors may become more cautious, while local buyers will seek more affordable options to avoid high tax burdens.

Renting and Investment

Rental properties will face additional taxation, which will increase rental prices. Investors will need to carefully consider long-term returns on investments.

 

4. How to Prepare for the New Tax?

Understanding Obligations

Review legislative changes and assess how they impact your properties. Collaborating with legal and tax advisors can streamline the process.

Budget Planning

Prepare for increased costs and plan your finances to avoid surprises.

Engaging Professionals

Contact professionals for:

• Tax advisory services.
• Legal assistance.
• Property valuation assessments.

 

Conclusion

The new property tax will significantly impact property owners and the market. While it poses financial challenges, timely preparation can mitigate negative effects. Collaborating with legal and financial experts is essential for a successful adjustment.

Frequently Asked Questions

1. How is the new property tax calculated?

The calculation is based on the value, location, and purpose of the property.

2. Who is exempt from payment?

Reliefs are available for specific groups, such as retirees and persons with disabilities.

3. How will the tax impact the real estate market?

Changes in prices and demand are expected, with a particular focus on rental properties.

4. How to prepare for the new law?

Engage experts for property valuation and financial planning to adapt to the changes effectively.