How to complete a property tax return

 The process for completing a tax return

Regardless of whether the property is purchased, acquired by inheritance or by gift, the declaration of immovable property is mandatory. In the case of acquisition or change of ownership of immovable property, as well as the granting for use of state or municipal property, new property that has not been put into operation, concession, change of use, redevelopment or other factors that affect the tax assessment are taken into account.

Collect the necessary documents

You need to find out in advance the current details of your property and what documents you need to attach to your tax return. In addition to the completed form, you may be asked to provide proof of identity, proof of ownership or inheritance and any building documents such as a property sketch.

Filling in the required details on the forms

First of all, be aware that there may be a difference in the form to be completed, depending on the type of your property. The most commonly used is the declaration under Article 14 of the Local Taxes and Charges Act. This form can be obtained locally at a municipal office or downloaded and completed from the municipality's website or government institutions.

The process of submitting a tax return

Once you have completed the form, you should sign and submit it to the local tax office within the specified time limits. In case you are unable to visit municipal offices, you can submit your form-online at the website of the state agency „E-government“. The document shall be submitted by the respective obliged person.

Tax exemptions according to the Tax Act

The Law on Local Taxes and Fees provides for relief in the assessment of tax where it relates to a property which is a main residence, also a residence of a person with reduced capacity to work.

Property which is used as a principal dwelling, a taxable person is entitled to benefit from a 50% reduction in the amount of tax.

A property that is the principal residence of a person with a 50% to 100% reduction in working capacity is entitled to benefit from a 75% reduction in tax.

How long does it take to complete and submit a tax return

Completing and submitting a tax return does not take very long, but it does require prior knowledge of the full details of the property available before the actual submission of the tax return.