The Greek real estate market has come to a complete stand still over the past two months, as the new law on the surplus value tax, which was introduced by the government and passed by parliament last December, has not been implemented yet on properties in Greece, leaving everyone wondering about the amount they will pay if they decide to buy or sell a property.
Now, the Greek Finance Ministry has decided to introduce a new bill to parliament, which will try to give a solution to the chaos, by revoking the already voted on property tax of December, thus complicating the application of the existing –though non-applicable– tax even more. It is noted that the Ministry has not published any kind of explanatory circulars, which would help notaries, bookkeepers or even Greek Tax Authorities to calculate the amount paid by property holders, wishing to proceed with a real estate transaction.
The only property transactions which can still be carried out are the ones that commenced within 2013, as they are still conducted under the old tax regulations, which have been replaced since January 2014 by the new chaotic surplus value tax.
This delinquency shown by the Greek Finance Ministry, which seems to become another Greek “success story,” has caused a collapse of Greece’s real estate market and has reduced the state incomes from properties to zero. Meanwhile, property holders, who wish by any means possible to get rid of their properties and of the connected financial obligations, can’t go through with the selling, as they don’t know how much they will pay in taxes.
From their side, the officials of the Ministry, who also introduced the tax last year, are now trying to resolve the mistakes embedded in the provisions of their law, while turning down all proposals by other parties, as well as by the Hellenic Property Federation (POMIDA).
In either case, even if a solution is found, the application will take a while, thus forcing everyone involved in real estate in Greece to be patient and just wait.