The government expects that the tax will bring between EUR 390m and EUR 395m in revenue, which is a bit less than initially planned. The revenue will be split in half between the state budget and municipalities.

Finance Minister Uroš Čufer told the press after the government session that the bill saw some corrections at the eleventh hour, adding that several exceptions were introduced in comparison to the draft presented last week.

Owners of real estate who receive social transfers will pay real estate tax at a 50% discount, while the levy on disabled persons who use wheelchairs will be reduced by 30%.

The bill also proposes the possibility of a tax loan for those who are unable to pay the tax. The debt would be credited to the real estate and would be settled when the individual had sufficient funds, for example on selling the property, or paid off by the heirs.

For residential real estate, the tax base will be 85% of the generalised value of the property in the real estate registry, but only for a period of one year.