Government to hike tax on second-home owners

The government plans to impose a higher annual tax on individuals that own a second home. Finance Ministry officials say the measure aims to rebalance the property market and generate additional public revenue.

Why is this important: Real-estate experts say the levy will not directly affect multi-property owners, who are likely to pass the extra cost onto renters. They argue sales and rental rates should remain stable as long as demand stays strong, especially in high-tourism areas.

Context: Under the proposal, anyone registering a second residential property will face a steeper tax rate than on their primary home. Experts note the ultimate impact hinges on the final rate and implementation rules. If set too high, landlords may hike rents; if moderate, the market may absorb the cost without major shifts. For now, property traders and tenants await the Finance Ministry’s detailed guidance on thresholds, exemptions, and enforcement.

Next steps:  Parliament is expected to debate the new tax framework in September. The Finance Ministry will publish regulations this summer, followed by a public consultation period. Stakeholders say clear rules will be crucial to balance revenue goals with housing affordability.