100% TAX or 100% Increase?

We would like to provide an update regarding the recent confusion over the housing tax proposal announced by the Prime Minister on January 14.

Initial interpretations suggested that the policy would impose a 100% tax on property purchases by non-EU, non-resident individuals. This was based on unclear statements made during the initial announcement.

Further clarification received on January 15 indicates that the proposal is not as severe as first thought. Instead of taxing the full value of the property, the plan is to double the existing tax rate for these specific buyers. This information has been confirmed through official documents and corrected media reports, which now reflect a more standard approach to tax reform.

The initial confusion appears to have been the result of a miscommunication.

Given the political landscape, it is unlikely that a drastic measure like a 100% property value tax would gain the necessary support in parliament. 

While the situation has been clarified to some extent, we are still waiting for an official and formal confirmation from the government. The legislative process required to implement such a policy includes detailed drafting and consultations, suggesting that further adjustments and clarifications may still occur.

We will continue to monitor the situation and provide updates as more information becomes available.

Should you have any questions or require additional information, please do not hesitate to reach out to us.