News for building owners!

The end of 2020 amends and supplements Law 227/2015 (by Law No.296/2020) including:

In the case of natural persons who own mixed-usebuildings : if the owner of the building has the company's headquarters at home but does not deduct his utilities (they are paid by the owner as an individual ) – it is NO longer necessary to draw up a valuation report, because the calculation of the tax on the building will be made by the local authorities.

It remains necessary to draw up a valuation report if the utilities are paid by the legal person (these expenses are deducted by the company).

An important change is that natural persons who on December 31st 2020 own mixed-use buildings are required to file a declaration on their own risk, up to and including March 15th 2021, concerning the area used for non-residential purposes (except for those who have declared by December 31st 2020 the areas used for non-residential purposes in accordance with the ITL model 001-2016).

Also with regard to mixed-use buildings, where the owner does not declare to the tax authorities the area used for non-residential purposes, the tax shall be calculated by applying the rate of 0,3 % on the taxable value determined by the local authority according to the method of calculation for residential buildings owned by natural persons (complementing Article 459, paragraph 3). ‍

For owners of buildings that are LEGAL PERSONS, the news is that the deadline for filing a taxable value declaration is changed, in order to keep a reduced tax rate, from 3 years to 5 years, but this change is valid starting with the  fiscal year 2022.

For 2021, in order to avoid an increase in the tax rate, companies which performed the last assessment in 2018 must request a new valuation report and file a declaration on the new taxable amount by 31.03.2021.

From 2022, the companies that have completed their last valuation in 2019 may decide to postpone the valuation until 2024.

Individuals who own buildings for non-residential use must also file a declaration on the updated taxable amount in the first quarter of 2021 on the basis of a valuation report, as the five-year period laid down by law expires.

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