The Ministry of Finances is supposed to be submitting the new bill for the unified real estate tax. Over the past year, we have heard quite a bit about numerous changes on the subject.
According to the law, all real estate property is accountable for taxation. The first square meter and the first euro in value can be taxed, with criteria coming into play such as: whether they are within city zoning plans or not, or whether they have electricity or not. It is now the first time in Greek history, that the agricultural land will be taxed. According to the terms of the law, farmers will also pay for their agricultural buildings.
The omissions and the injustices of the previous draft are aimed to be an improvement in the new one. According to the previous draft, the taxpayers could cede property to the State in lieu of paying taxes, without paying back any change in cases where the value of the property exceeds the debts. The new law predicts that taxpayers can give part of their property to the value of their debts. The law hasn’t addressed situations where the property cannot be broken into smaller parts.
Rumor has it, that the new adjustments will reduce the transfer tax to 3%. Although the market experts believe that real estate transactions will stop when this tax reduction is implemented. The talk as of late, is that a 50% reduction might be available to low-income groups, but the Minister hasn’t revealed if there will be any exemptions.
For apartments, houses, offices and stores, the location and the age of the building will be taken into consideration. There are 20 different categories and the tax value starts from 2.3 Euros to 14 Euros per square meter. For plots of land within city zoning plans there will be 25 different rates, starting from 2 cents to 30 Euros per square meter.
For agricultural land and all other real estate outside of city planning, the tax value starts from 1.5 Euros per acre and will increase according to the specifics of each plot of land.
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