2024-08-25 13:25:29
Reductions in the objective zone prices of real estate in 34 zones and settlements of the 12 municipalities whose objections were accepted are expected to be decided this year.
The leadership of the Ministry of National Economy and Finance, after approving the objections of 12 municipalities against the objective prices that came into force in the specific areas from 1-1-2022, has already invited the private appraisers certified by the ministry to propose new reduced objective values which, it should be noted, will not have retroactive effect.
The taxes
In the 34 areas of the 12 municipalities, where the objective zone prices are expected to be reduced, 20 taxes imposed on the possession and acquisition of real estate will be reduced and depend on the level of these prices. The taxes that will be affected are, in detail, the following:
1) The main Uniform Property Ownership Tax (ENFIA), which is imposed based on scales of basic amount of tax per sq.m. of property, depending on the amount of the zone price per sq.m. applicable in the area of each property.
2) The additional principal ENFIA of natural persons, which is imposed on taxpayers with urban immovable property (buildings and land within planned cities), with a total objective value of more than 300,000 euros, if they hold percentages of real rights or full ownership of real estate of objective value 400,000 euros each.
3) The real estate transfer tax (VAT), which is calculated at 3% on the objective value of each property sold and is borne by the buyer.
4) The 24% VAT imposed on sales of newly built buildings that do not constitute a first residence.
5) The building use tax.
6) The tax on the exchange of plots of land.
7) The property distribution tax.
8) The Property Tax (TAP), which is imposed in favor of Municipalities through electricity bills and is calculated with coefficients scaled from 0.25‰ -0.35‰ on the objective zone values of electrified buildings.
9) The municipal tax charged on real estate transfers (calculated as a percentage of the transfer tax).
10) The additional contract transfer fee.
11) The parental property tax, which is calculated with a tax-free limit of 800,000 euros and a rate of 10%.
12) The property donation tax, which is calculated with a tax-free limit of 800,000 euros and a rate of 10% for donations to spouses or grandchildren, with a tax-free limit of 30,000 euros and rates of 5%-20% for donations to other second degree relatives and with a tax-free limit of 6,000 euros and rates of 20% to 40% for donations to other relatives and non-relatives.
13) The property inheritance tax, which is calculated with a tax-free limit of 150,000 euros and rates of 1%-10% for donations to spouses, children or grandchildren, with a tax-free limit of 30,000 euros and rates of 5%-20% for donations to other second-degree relatives and with a tax-free limit of 6,000 euros and rates of 20% to 40% for donations to other relatives and non-relatives.
14) The real estate registration fee in the Land Registry.
15) Urban planning fines for maintaining unauthorized buildings.
16) Urban planning fines for the construction of new arbitrary buildings.
17) Contributions in land and money for the inclusion of real estate in city plans.
18) The special property tax of 15% imposed on offshore property companies.
19) The income tax imposed on presumptive incomes, which are determined based on the objective costs or presumptions of living of the taxpayers’ homes.
The objective costs or presumptions of living of the residences are increased by 40% for residences located in areas with objective prices from 2,800 to 4,999 euros per sq.m. and by 70% for homes located in areas with objective prices from 5,000 euros per sq.m. and above.
20) The tax on the imputed income from the self-use of a business home and from the free grant of a residence. This income results from multiplying the objective value of the property by a factor of 3%.
The belts
The objective prices will be reduced in the following areas and zones of the 12 municipalities:
- F’ of the Municipality of Vrilissi
- IE’ and ITH’ of the Municipality of Chalandrio
- A’ of Agioi Anargyro of the Municipality of Agioi Anargyro-Kamaterou
- B’ and C’ of Kamateros of the Municipality of Agioi Anargyro-Kamaterou E’ of the Municipality of Glyfada
- E’, G’, I’, I’, IA’, IB’, IG’, IE’ and IZ’ of the Municipality of Piraeus
- II’ of the Municipality of Pyrgos Ilia I’ of the Municipality of Ithaca (includes the whole city)
- A’ of the Municipality of Astypalaia (includes the whole city)
- A’ of the settlements of Volada, Kyra Panagias, Menetai, Pylai, Spoas, Theologu and Kremastis of the Municipality of Karpathos (each settlement is a single Zone)
- A’ of the Municipality of Karpathos (includes the whole city)
- A’ of the settlement of Pastidas of the Municipality of Rhodes (includes the whole settlement)
- A’, E’, G’ and F’ of the Municipality of Rhodes A’ of the settlements Emporios and Pedion of the Municipality of Symi (each settlement is a Zone) D’ of Loutraki of the Municipality of Loutraki-Perachora.