Ministry poised to raise real estate tax on in-demand properties - HS in English | HS.fi

Ministry poised to raise real estate tax on in-demand properties

The Ministry of Finance has laid out plans to overhaul the Finnish real estate tax scheme in an attempt to adjust the assessed valuation of properties to also account for their location. In effect, the plans could result in a jump in the tax rates applied to properties located in the most sought-after areas of cities and towns. Properties have become a regular cash cow for the Ministry of Finance due to the taxable nature of buildings and land, them being unable to move out of Finland if tax hikes are introduced.

17.4.2014 14:57

It is also easier to conduct forecasts of revenues from the real estate tax than from corporate or excise taxes. Moreover, several municipalities have thus far maintained relatively low real estate tax rates.

Real estate tax rates are determined by municipalities - Last year, revenues from the real estate tax stood at roughly 1.3 billion euros. - Two-thirds of the revenue was derived from buildings and one-third from land. - Real estate tax rates are set by municipalities within limits determined by the Parliament. - Some 90 municipalities raised their real estate tax rates for this year.

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