Easier purchase of first property for young people, 45 square meters tax-free

SARAJEVO, (Patria) - The Sarajevo Canton Assembly today adopted the Draft Law on Property Tax, which will please all those buying an apartment for the first time, as well as unmarried couples. What it is about is explained by Our Party representatives Vildana Bešlija and Vibor Handžić, who are the proposers.

“It is about the fact that there are certain categories of the population that are exempt from paying property transfer tax. Under certain conditions, married partners fall into this category, but under the same conditions, unmarried partners do not. They have now been added. The Law on Property Tax is thus now aligned with the Family Law of the Federation of BiH,” says Bešlija.

Vibor Handžić points out a provision according to which persons up to 38 years of age, when buying an apartment for the first time, will be exempt from paying tax on 45 square meters of that apartment. Until now, they were exempt for 30. This applies to the first member of the household, and for each subsequent member, the number of square meters increases by 15.

“Practically, this means that a couple, if both are entering into the purchase of a property for the first time, will now be exempt from paying tax on 60 square meters of that apartment. This is what I believe will encourage many to become independent, but also have a positive impact on the birth rate,” says Handžić.

It is also important to mention that, at Handžić's initiative, the inheritance tax for second-degree heirs has been reduced from the current eight percent to five percent.