Real property agency Cyshman and Wakefiels forecasts increase of rental prices. As stated to BM.ge Lia Rusadze-Beselidze, Consulting Director of the company, as a result of banning of cash settlements, owners will have to pay income tax, due to which fact rental prices may grow.
“When an owner gets rental in cash, it may well be that they register a lower rental price to reduce due taxes, but in this case it will not be possible anymore and, to earn the same money, they may increase the price,” – stated Lia Rusia-Beselidze.
The expert positively assesses the initiative of the Ministry of Finance and states that banning of cash settlements on the real property market will trigger uprooting of black market,
“For instance, when a purchase agreement is concluded, it shows relatively smaller amount than the property is actually sold for. In this case mainly the taxes are hidden, which harms the state. We believe that with the taxation point of view, this will be a rather positive step for the country,” – noted Lia Rusia-Beselidze.
