Moldovan finance minister says mayoralties to adjust tax rates in line with citizens’ means

The update of the cadastral values of real estate will not generate additional revenue for the state budget, but serves as a reference for taxes that are set by  mayoralties. Accordingly, mayoralties and local councils are to adjust tax rates in line with current realities and citizens’ financial capacities. Finance Minister Andrian Gavrilita today made statements to this effect.

“The state budget will not collect anything as a result of these changes. The update of the value of real estate serves as a reference for taxes that are set by mayoralties. Each mayoralty, for its locality, is responsible for setting tax rates, as well as any exemptions or benefits, while the state budget, under current legislation, receives absolutely nothing from property tax,” the minister stressed.

Andrian Gavrilita emphasized that updating cadastral values must not automatically mean an increase in the amount of taxes, because mayoralties are obliged to review the taxes as well, so as to make them as fair as possible and aligned with reality and citizens’ ability to pay.

“The mayoralties, through council decisions, set the rules, percentage rates and any exemptions or benefits. This is entirely the prerogative of local authorities. Thus, in each locality the mayoralty and council are responsible for setting these taxes. We have ensured greater transparency in the actual valuation of properties; this must not automatically mean an increase in the amount of taxes, because mayoralties are duty-bound to review taxes and make them as fair as possible, in line with reality and citizens’ means,” the official noted.

The Agency for Geodesy, Cartography and Cadastre has carried out the process of valuation and revaluation of the cadastral value of real estate nationwide and launched, at the beginning of this week, public consultations to verify the preliminary results. The data can be checked by citizens on the website www.geodata.gov.md and property owners who disagree with the technical characteristics included in the valuation have 90 days to file appeals. The process of validating the new cadastral values will be finalized by late next October, after which they will be implemented starting from 2027.