On October 22 2015, the National Assembly of the Republic of Srpska adopted amendments to the Law on Property Tax. The Law entered into force on January 1 2016.
The most significant change introduced with the amendments is the decrease of the maximum property tax rate. The Law authorises municipal assemblies to determine the annual tax rate on a municipality basis, as well as in accordance with the following regulations:
- Up to 0.10% for productive property (that is, property directly related to production), such as a plant or a warehouse for raw materials or finished goods; and
- Up to 0.20% for other types of property.
Property used for educational, scientific, social, health and sport purposes is no longer exempt from property tax. On the other hand, property built exclusively for further sale is excluded from taxation as of January 2016.
The tax base for property tax is the market value of the land and buildings, which is – per the legislation – estimated by municipalities and corrected by the tax administration of Republic of Srpska.
© 2019 Euromoney Institutional Investor PLC. For help please see our FAQ.