Owning holiday homes in Goa would now be a costly affair - The Economic Times

PANAJI: In a measure aimed to rationalise the real estate prices in Goa, the state government has decided to levy hefty occupancy tax on those dwellings purchased by non-Goans and left unoccupied, often used as holiday homes.

"The idea is to impose tax of 200,000 to 500,000 rupees (about $4,000 to $10,000) per annum," chief minister Digambar Kamat said. "The tax would be levied with retrospective effect."
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  • This may not be a very good move given the recent economic crisis in Goa and the stagnant property market. Goa properties have not been selling in the recent past. Also Goan property, (comprising holiday homes mainly) buyers are mostly from Indian metros like Mumbai and Delhi. Imposing such a tax might only demotivate these choice rich buyers from considering Goa as a second home destination.

    Also, since the State of Goa makes money through taxes, stamp duty etc. at the time of purchase and the municipal corporation makes money through property taxes, it may seem unfair to buyers to pay additional tax. In the current environment, such a measure may not achieve the desired outcome. It may even rebound and influence buyers to shy away from Goa.

    Having said this, reputed second developers continue to develop quality homes in Goa. For ex. Peninsula Land Limited, part of the Ashok Piramal group is developing a lifestyle second home project, “Ashok Beleza”, in Panjim. This project was featured in a recent impressive second homes Times Property, Mumbai, article.

    CUTTING-EDGE AND BREATH-TAKING
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  • This is a 2011 article
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