Fines for those who pay their first property tax tranche by the end of April

An interest of 0.65% will apply to them for each month that is delayed payments, as well as a 10% fine of unpaid taxes.

The citizens who pay, meanwhile, will be able to benefit from the Bill on Change and Fulfill the Law on Taxing Real Property.

This bill envisions each taxpayer being paid up to 100 euros in the property tax bill for the 2023 tax year. So if he pays the property tax bill for 2023, his apology is counted as a advance for the following years.

The decision to pardon property taxes, according to the draft law in question, is taken by the Municipal Assembly of every municipality, at the latest 30 days from entering into force of this law.

The bill was adopted on 31 March in the Government of Kosovo and delivered to the Kosovo Assembly.

But until its final approval, there are also several phases to pass, which are not expected to take place within this month.

Finance, Labour and Transfers Minister Iron Murati has stated that with forgiveness, 85 percent of taxpayers would pay nothing this year, another 10 percent would pay less than 100 euros, and only 5 percent of taxpayers would pay more than 100 euros.

How is the property tax paid?

Paying property taxes in Kosovo could take place in two installments.

The deadline for paying the first tranche is April 30th, while for the second tranche is the end of September.

The bills increased by 100%

The property tax issue has become a topic of discussion in Kosovo, in recent months, as bills for 2023 have increased.

Property tax is an annual municipal tax and is determined by the multiplie of property value with the tax rate. This rate is 0.1% of the total property value.

The increase in property tax bills occurred after the overall assessment of land and residential objects, which the Ministry of Finance, Labour and Transfers has made late last year.

After this assessment, property taxes for some have increased by 100%, and for some, the value of property has remained unchanged, as after the assessment has not changed.

Opposition parties in the Kosovo Assembly have rejected increasing property tax.

The Democratic League of Kosovo has initiated a resolution in the Kosovo Assembly in February, calling on the Ministry of Finance, Labour and Transfers to suspend property re-evaluation and property tax bills for 2023 to be counted according to preliminary assessment.

The resolution is supported by other opposition parties: The Democratic Party of Kosovo and the Alliance for the Future of Kosovo. But, as such, it has not passed to the Parliament, because it has not been voted by the ruling party, the Vetevendosje Movement.

The outcome of the property re-evaluation decision has also called for the Kosovo Community Association Board. The demand is made due to, as it has been said, the difficult economic environments for citizens, such as the rising prices of basic products and other products”.

What are the benefits of the state?

From property tax, the state of Kosovo has an annual inflow of up to 40m euros.

Incomes collected from real estate tax are collected into the municipality's real estate account and used by municipalities for infrastructure development and other projects that improve the lives of citizens.

With the law in Kosovo, the property assessment by the Ministry of Finance, Labour and Transfers takes place every three or five years.

The latest assessment, this ministry has made last year, while its implementation in property tax has started in January of this year.

The preliminary assessment was made in 2019.