23. 10. 2019
In June we wrote that the deadline for introducing new real estate valuation models had been postponed from July 31st 2019 to March 31st 2020 with the amendment of the Real Property Mass Valuation Act (ZMVN-1a).
The real estate valuation models are part of an attempt to assess the market value of each individual real estate. This in turn would constitute the basis for calculating the new real estate tax. The proposed valuation models for individual buildings (e.g. apartments, houses, business premises, industrial buildings, buildings for tourism), land (e.g. agricultural land, forest land, development plots) and other special real estate throughout the country,
are published on the GURS website. Valuation models have also been made public in all Slovenian municipalities, allowing every real estate owner to lodge opinions and suggestions on the proposed models until November 15th.
GURS has also launched an
app to allow users to trial the new real estate valuation models.
After the 45-day public consultation deadline, municipalities will first express their opinions on the comments, after which GURS will adjust the models as needed. By the end of March 2020, the government must confirm the final proposals of the models which will be used to generate approximate valuations of all real estate in the country.
At the beginning of April next year, every real estate owner will receive official confirmation of the approximate valuation of his real estate by mail. Only after April 1st will it be possible to request a revision of the valuation on various grounds (e.g. damage to the building etc.)
Final confirmation of the legality of the proposed valuation models, the basis of which is set down under ZMVN-1, will be postponed until the Constitutional Court ruled on the legality and constitutionality of ZMVN-1. This case is being heard on foot of a petition by one of the parliamentary groups. These members of parliament argue that the approximate valuations (and therefore the valuation models) should only be determined by law, and not a regulatory decree passed by government. Even if the ZMVN-1 is found to be consistent with the Constitution, a new real estate tax law (which will be based on the real estate valuation models), will not be enacted during the term of the current coalition.
Author: Matevž Klobučar, senior associate