Rules on empty home tax to apply to Iran's cities with population over 100,000
TEHRAN, Iran, Aug. 3
The head of Iran parliament's economic commission said that the homes located in cities with a population of over 100,000 will only be targeted of the tax plan for empty houses.
During the review of the urgent plan to amend the Law on Direct Taxes, Mohammadreza Pour-Ebrahimi said that all landlords are required to upload their information in the property registration system, Trend reports citing Mehr News Agency.
Iranian parliament has ratified the double-urgency plan of the vacancy tax law on July 12. It is mainly aimed at lowering the housing rental rate in the country.
Following the session on Aug. 2, Deputy Chairman of the Parliament Economic Commission Ehsan Khandozi said: "The purpose of the tax plan on empty houses is to prevent hoarding.”
He stated that the amount of housing hoarding in the country is higher than in other countries and this has caused the lack of supply of houses to the market.
Under the new taxation rules, if owners of empty houses refuse to rent out their property in successive years, they would face an additional tax of up to 50 percent of the duties they owe.
The new law comes amid soaring rental prices in large cities in Iran as experts point to a crisis of unaffordable prices plaguing the country’s housing market.
Surveys carried out last year by government’s statistics agency show that there are more than 2.5 million vacant houses, or 10 percent of the total number of properties, in Iran. The figure is around 13 percent for the capital Tehran, a city with population of more than eight million which has over 2.5 million houses.