According to the Local Taxes Act, a property tax payer is required to report any changes relevant to the determination of their tax obligation to the Tax Administration by 31 March of the tax assessment year.
Such changes include, in particular changes in the calculated surface area of the property, changes in the purpose of the property that affect tax calculation, providing evidence that may qualify the property for a tax exemption.
The Tax Administration has issued a notice stating that individuals are not required to submit a tax declaration for properties that are already subject to municipal utility fees, that are rented based on a registered lease agreement, which has been reported to the Tax Administration for income tax purposes.
Failure to submit necessary data for determining property tax obligations can result in fines ranging from 1000 € to 6630 €, which also applies to failure to report any relevant changes in tax-determining data.
For the purpose of reporting data relevant for taxation or applying for a property tax exemption, request forms are available for both individuals and businesses.
Taxpayers are required to complete only the information specified in the request form, including details about the taxpayer as the property owner and details about the residential property if there has been a change in its calculated area or purpose. Additionally, the taxpayer must report any residential property for which they may qualify for a legally prescribed property tax exemption.
Businesses and citizens must report properties eligible for tax exemption to the competent tax authority if they meet the following criteria:
- Used for permanent residence (if a person without a registered residence/domicile lives there, or if a lease agreement is not reported to the Tax Administration),
- Uninhabitable due to a natural disaster declaration,
- No longer suitable for residential purposes,
- Used for public purposes or for institutional housing,
- Intended for sale or acquired as compensation for unpaid claims (if less than six months have passed between the date of entry into accounting records and 31 March of the tax assessment year).
The application must be submitted by 31 March of the year for which the property tax is assessed, to the competent tax authority based on the location of the property.
If the Tax Administration is the designated tax authority, the application form will be available for electronic submission via ePorezna starting 24 February, 2025 and via mPorezna during March 2025.