Plan for major objective value horizontal cut

The Finance Ministry is examining a pan for horizontally slashing official property prices, known as objective values, by 25 to 30 percent, given that in four months’ time the new objective values will have to be ready according to the decision by the Council of State.

Ministry officials note that the adjustment of the values used for tax purposes will be far from easy, as there has been no preparation to date.

The same officials also remind that the new system for the automatic adjustment of the objective values will not be ready before January 2016, so the only solution for now can be a horizontal cut by 25-30 percent in order to approach or match market prices.

An official of the ministry did add, however, that in the case of areas where the objective values of properties are still below market rates there will most likely be little or no intervention.