The Unassuming Economist

The latest IMF’s report on Slovak Republic says that:

“To complement macroprudential policy efforts, consideration could be given to reducing tax subsidies for owner-occupied housing (…). Staff’s analysis shows that the tax on owner-occupied housing in Slovakia is just 58 percent of the tax-neutral benchmark indicating sizable subsidies consisting of untaxed capital gains and exemption of imputed rent. In Slovakia, main residences are exempt from capital gains tax after 2 years of tenure, which contributes to tax subsidy. The average subsidy on untaxed capital gains could be reduced from the current level of 18 percent to bring it in line with the EU average of 13 percent. In addition, there are also direct subsidies for home ownership for individuals under the age of 35.”