Parliamentary Question 22179 provided information on how much the Government collected from the 15% rent tax introduced in 2014. It is a known fact that before this system was introduced on the proposal of the MDA, the Government collected very little on rents.
In the first year of the system, the Government raised €5.7 million, which continued to increase year on year to €57.3 million in 2020. This equals to an increase of 1000%. In total, €245 million was collected over 7 years in taxes from the rental market which were certainly well used for social projects such as an increase in pensions and infrastructure, such as new roads.
This information, released this week in Parliament, is one example of how when a sector such as property is given the opportunity to comply with the law and at sustainable tax rates, both the Government and the people get to gain.
The MDA believes that systems where one can comply sustainably rather than through an unsustainable force, lead to win-win results.
