After many debates and continuing revisions, the Finance Ministry has finally submitted the real estate tax bill to Parliament, which is expected to generate 2.63 billion euros of revenue in 2014. The new tax, which replaces a number of previous taxes on property, essentially integrates the emergency tax that was until now collected by DEI.
As reported by the newspaper “To Vima,” according to the bill, every apartment, office, store or plot of land is taxed from the first square meter, without any tax-free thresholds. The tax on buildings varies from 2 to 13 euros, depending on the region. The tax for new buildings (up to four years old) will be 25% more than the tax for older buildings.
For property with an objective value over 300,000 euros, there will be an additional tax. For land with an objective value of up to 1,000,000 euros, this additional tax will vary from 100 to 3,800 euros. For land assessed over 1,000,000 euros, the tax will be equal to 1% of its objective value.
The basic tax on plots of land ranges between 3 and 9,000 euros per acre, in 25 different rates. Each rate is determined by factors as the area, the development of the land, commercial activities etc.
The taxation of agricultural land is between 1 and 3 euros per acre depending on location. Buildings for agricultural use, such as pens, coops, warehouses are excluded.
According to the bill there will be a 50% tax exemption for owners whose property is less than 150 square meters and do not have any pending debts to tax department or insurance funds. The taxpayer also must have a low income: up to 9,000 euros if unmarried, 10,000 euros if married, 11,000 euros if married with one child and 12,000 euros if married with two children.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
