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Imputed income on properties raised

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11 May 2016

 

The Government imputes owners of second or holiday properties with an estimated income of 1,1% of the cadastral value of the properties. The same rule applies to non-resident owners. The coefficient to estimate the imputed income was 2% for properties with a cadastral value that was not revised prior to 1994.

Municipalities have to make a general revision of the cadastral values every 10 years. Income Tax Act has been modified accordingly so the coefficient of 2% for the tax year 2015 will apply to properties which cadastral value has not been revised prior to 2005.

Non-resident owners have to declare said imputed income and pay the correspondent income tax for year 2015 by 31 December 2016.

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