A new method for assessing the rental value of real estate assets as tax basis for property tax and contribution on business property has entered into force as from 1 January 2017.
This new method replaces the former rules on the basis of which the surface area of the property was split into various categories, to which a rate per square meter was applied by reference to a 1970 referential and then updated through various discount rates.
Under the new valuation method, the rental value would be deter-mined based on market prices in the leasing sector updated on a yearly basis. In order to avoid a significant variation of the amount of taxes due, various adjustment mechanisms would apply.
The first tax notices established on the basis of the new method should be issued by the last quarter of 2017 and should be carefully audited by taxpayers.