Illustrative image. (source: TASR)
The property tax in Slovakia will probably increase, meaning people could pay more for their flats and houses to the state, according to Finance Minister Ladislav Kamenický (Smer). The higher tax is one of two measures intended as part of the next consolidation package currently being either considered or negotiated.
According to the minister, since the tax is income of the Association of Towns and Municipalities of Slovakia (ZMOS), the measure should help it obtain more money instead of asking more from the state, reports the Sme daily. Local governments have had problems with money for several years due to measures taken by both former government of Igor Matovič as well as the current Robert Fico one.
Missing money
One of the reasons for the consideration of the higher tax is the disparity in the tax paid and the tax set by law.
The daily reports that there are municipalities, such as the village of Horná Mariková in the Považská Bystrica district, in which the property tax has not been changed in many years. Residents in this particular village pay five cents for every square metre of residential building, which is less than what the law stipulates. So, locals pay €5 a year for a house with an area of 100 square metres. According to the law, it should be at least €332.
According to Jana Červenáková, executive director of ZMOS, the Finance Ministry came up with the idea back in the summer of 2023. Back then, it was the first time ZMOS learned that there municipalities that either do not collect the tax or in which the tax is very low.
Although talks continued into early 2024, they eventually stopped; until early March when ZMOS announced a meeting at the ministry, where they showed up with several consolidation proposals, including an increase in the tax.
ZMOS chair Jozef Božik said that they agreed with Kamenický on some of the aspects, including the yearly tax increase according to inflation. If the proposal were to pass, it would mean that people would have to pay more for their property every year. Still, living costs are increasing in almost every aspect of life due to the first consolidation package. At the moment, the local governments are €160 million short for both this and the next year.
A list of changes
ZMOS and the ministry also want to discuss that people who own several flats should pay a higher tax. For example, if a person has two flats and rents one of them, they would pay two to three times more tax for the second flat than today.
According to Božík, the tax rate for a storey in non-residential premises should also be changed. Last time the rate changed was in 2004 and is set at 33 cents per square metre. It could go up by no more than €1 per square metre.
The last thing that ZMOS has not agreed with the ministry, however, is to increase the tax rate for real estate in which gambling is conducted, such as a casino or a gaming room, by two to five times.
