Last year, Belgrade’s decision not to extend the five percent maximum tax increase has led to higher property taxes for many residents this year. With notifications arriving both by mail and electronically, taxpayers are noticing significant increases compared to the previous year, despite the city’s omission of announcing average real estate prices per square meter. For instance, in the central business district, a 76-square-meter apartment’s property tax has risen by approximately 1,800 dinars, marking a nine percent increase from last year’s 19,806 dinars.
In Braće Jerković settlement, taxes on a 49.5-square-meter property have risen by about 530 dinars, an eight percent increase from the previous year’s 6,741 dinars. Similarly, residents of Banovo brdo report a ten percent increase, while those on Vračar note a five percent rise in their property taxes.
The Secretariat for Public Revenues explains that the absence of previous years’ tax increase caps has resulted in varied tax hikes. Previously, limits kept tax bases lower than current calculations indicate, but this year, citizens face full taxes based on last year’s assessments. The Center for Local Self-Government (CLS) highlights the significant impact on Belgrade residents due to the city’s failure to cap property tax increases this year.
Nikola Jovanović, director of CLS, stresses that in previous years, Belgrade had restricted annual increases to no more than five percent to shield residents from economic shocks. The absence of such a decision for this year has led to unexpectedly higher property taxes. CLS urges city authorities to reinstate the five percent cap on property tax increases for the current year.
Looking forward, CLS plans to present its proposal to limit property tax hikes to Nikola Nikodijević, president of the city assembly. The current decision from the City of Belgrade allows for property taxes in 2023 to increase by up to five percent compared to last year’s amounts, following the existing tax liability.
Moreover, without a decision on average prices per square meter by November 30, 2023, the Law on Property Taxes dictates that prices remain unchanged from the previous year, thereby determining the tax base accordingly.
