A new tax on apartments in areas with developed infrastructure?

A new tax on apartments in areas with developed infrastructure?

The Ministry of Finance is preparing a law on taxes on windfall profits, instructing the Office of Fiscal Policy to study and review this issue.

In July 2018, the Council of Ministers approved and discussed the possibility of introducing a higher tax rate on profits received as a result of sudden unexpected profits for a particular company or industry.

This is a new tax burden that the government plans to collect from the higher value of real estate, the purchase and sale will be carried out with a maximum rate of 5% of the value. This will apply to more elite housing in «improved zones» - real estate within a radius of 5 km from high-speed train stations, airports, highways, etc. This tax will be levied only when land prices rise as a result of infrastructure improvements.

As for the impact on the real estate business, the market in the country has not been affected, since most of the projects are not located close to public transport stations.

The law has not been adopted yet and there will be new hearings and discussions before the final decision is made.

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