It was only talked about in the Czech Republic for years, maybe even decades. It was well known that the tax on real estate is one of those where potential billions for the state budget are hidden. The reason is simple. While in the case of an increase in other taxes, their payers will usually do their best to somehow optimize or even not pay them, in the case of property taxes, this is simply not possible.
You will pay a lot more
Everyone knows which properties you own, and it is then a piece of cake for the tax office to collect the annual fee or tax. At the same time, however, it has always been the case that this tax is simply not used. It is a property tax, which de facto penalizes ownership. If you have earned something and bought it with already taxed money, why pay additional taxes for owning such a property, many ask.
This is also why this tax was simply not affected, and that is because the enlightened representatives of the state were well aware that owning a house or apartment in the Czech Republic does not automatically mean that such a person would be drowning in an excess of money. It is often an inheritance that people then use for their own housing, or a real estate that has been stolen and paid for by a mortgage and serves as a security for old age.
This last stronghold, which he did not touch, nevertheless fell definitively. As part of the consolidation package, it is already clear that from next year the property tax will increase, and not just a little. It will grow to 1.8 times its current state. This means that you will pay approximately 80% more. Actually, it’s almost double.
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It presents a problem
It is widely argued that the property tax was too low in the Czech Republic and that it needed to be reduced. But others say it was low for the good reason we described above. “It’s a real shame. Although I live in my own house, I’m already having trouble making ends meet on my pension, and they’re going to charge me even higher taxes,” says Mrs. Květa, who owns a small terraced house in Kolín. The increase will be a problem for her, because she will have to put aside approximately two hundred extra crowns for it every month.
However, this increase in real estate tax appears to be just the beginning of a trend. The dam was finally broken, and the state proved that it could use this tax as well. This may continue for years to come. After all, investment banker Ondřej Jonáš advises that this tax be increased to twenty times the current level. This is said to be the case in France and other western countries.
Foto: Shutterstock
2023-08-26 19:28:49
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