Annual Property Tax


According to the Local Taxes and Fees Act /LTFA/ every person who owns a real estate property must pay ANNUAL TAX and FEE FOR GARBAGE DISPOSAL. Their amount is calculated after submitting of a Declaration to the relevant Municipality by the owner of the real estate. The term for submitting of such a declaration is 2 months from the date of acquisition of the real estate. If this deadline is not met, the Municipality will charge a fine and a legal interest. Each municipality determines amounts of taxes and fees according to the ORDINANCE adopted by the Municipal Council.

The tax itself represents a payment that is due without any additional conditions. On the other hand the fee represents payment for the service provided by the relevant Municipality. Such service includes: collection, removal, recycling of domestic waste and cleaning of the territory for public use.

Very often the owners believe that since they do not live in their real estate, they do not have to pay anything. That is not so. Annual tax is always due, and a large number of municipalities allow reducing of the fee for garbage disposal if the owner of the real estate does not live in his estate and does not have previous unpaid obligations. Reducing of the amount of the fee requires submitting of an explicit Request.
When the real estate property is residential it does not matter whether it belongs to a physical or to a legal person. However, when speaking about anon-residential real estates, legal entities are obliged to declare the real estate property at the reporting value /the value of the object according to the acquisition document plus expenses for acquisition/, and the Municipality will calculate the amount on the basis of this value. It means that the tax and fee will depend on expensiveness of the real estate purchased by the legal entity.

Annual taxes should be paid during each current year and if payment is not made on time the Municipality will change the legal interest and in the event of accumulation of debt Municipalities start Executive cases against debtors.

If necessary, each of our clients can contact us regarding:

  • free check of taxes and fees due by the client;
  • submitting of the DECLARATION about taxation of the real estate property;
  • a Request about reducing of the fee for garbage disposal;
  • payment of the taxes due by the client. 

If you need assistance or if you have any questions you can contact us at: