Owners or users of real estate may be liable for a fee for the use of building land, and owners may be liable for property tax.
Fee for the use of building land
The tax authority assesses the fee for the use of building land (hereinafter: fee) and collects it on behalf of the municipality. The Financial Administration assesses the fee within three months of receiving the information sent to it by the municipality. A decision and payment order are then sent to the person who has to pay the fee. The decision is issued ex officio (i.e. the liable person is not required to submit a declaration) once a year. The person liable to pay the fee is the direct user of the real estate. While this is generally the owner, it may also be the tenant.
Fees are a tax in the municipality in which the property is located, and is paid to the transitional tax sub-account of the municipality, reference no SI19 DŠ‑97004.
Exemption from payment of the fee
Upon request, a person who has purchased a new apartment as an individual part of building or who has built, extended or upgraded a family dwelling is exempt from paying the fee for a period of five years. The municipality may also grant exemption or partial exemption from paying the fee for lower-income persons. In both cases, a letter, which is normally drawn up by the person liable for paying the fee, must be sent to the municipality, although some municipalities publish their own forms on their websites.
Property tax is another tax payable in certain cases by the owner or user of real estate. This tax is payable by natural persons who own buildings, parts of buildings, apartments and garages, or rest or recreation areas. The person liable for payment must file a declaration within 15 days of purchasing real estate (or 15 days from the issue of the operating permit) at the tax office for the area in which the property is located. The base for determining the property tax is the value of the building or space. The tax administration issues the liable person with a decision and payment order once a year.
Property taxes are a tax of the municipality in which the property is located, and are paid into the transitional tax sub-account of the municipality, reference no SI19 DŠ‑94005.
Exemption from paying property tax
No tax is levied if the residential area of the building in which the liable person or their immediate family members have their permanent residence is less than 160 m². Similarly, the first owners of new apartment buildings or apartments and garages also enjoy a temporary exemption from this tax for a period of ten years. For the exemptions referred to in the Property tax SI document, the liable person must send an application (drawn up by themselves as there is no official form) to the Financial Administration by 31 January. The document also lists the tax rates according to the value of the property.
Did you know?
If, in the course of the year, the person liable to pay the fee changes, the liable person to whom the decision has been issued has the right, within 15 days of the change, to request that the decision be amended in such a way as to reduce their liability, and to have the corresponding amount of the fee determined.