NEW REAL ESTATE TAX REPLACES THE UNIFIED PROPERTY OWNERSHIP TAX

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A law draft concerning the new real estate tax, aimed at replacing the unified property ownership tax is already being prepared by the Ministry of Finances. The purpose of the new regulation is to reduce the tax for property owners, in particular of small properties, this way the tax will be progressive and foresees a higher tax rate for larger properties. Provided that the time frame, set by the Ministry of Finances, is adhered to, It is estimated that, given the time, required for adjusting the fair trade values of the market, at the end of 2017, the new taxation system of real estate properties, will come into force starting on 1-1-2018, with the aim of issuing the unified property ownership tax declaration for the following year, as of March 2018. In any case, the target tax revenue for 2018 remains in the amount of €2.65 billion, which, if not collected, will result in the reductions of exemptions applied this year.
Based on the new plan, zone prices that will be considered for establishing the taxable value of properties will be aligned with the market prices, by setting up, until the end of May 2017, a special working team, who will evaluate and adjust the real estate tax rates, in cooperation with the team of top executive directors of the Bank of Greece (ΕΛΛ-0,97%) and the Hellenic Statistics Authority. Adhering to this time plan, until the end of July 2017, all the data will be collected and the means of identifying the value will be established.
In the event of a small drop in the revenues collected from the unified property ownership tax, in relation to the estimated amount of €2.65 billion, due to the new prices, the tax base will be broadened and the tax rate will be adjusted accordingly, in order to achieve the initial target revenue amount.