The Municipal Property Transfer Tax (“IMT”) which was scheduled for extinction in 2017 by the previous government will be maintained, according to the 2016 State Budget Proposal. The tax is currently the second largest source of revenue for local municipalities.
The government has abandoned many of the proposed IRS reforms to the 2015 Budget in hopes of achieving a consensus with the opposition Socialist Party. With recent successive alterations, it would appear that only the final Budget vote will clarify which changes survive.
Proposed repeal of “IMT” in January 2016
The Government will end Municipal Property Transfer Tax (IMT) in January 2016, tax paid when buying a home. In their memorandum, the ‘troika’ had already suggested the transfer of IMT tax revenues to Municipal Property Tax (IMI).