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[BUYING AND SELLING REAL ESTATE IN GREECE]
transfer by a manufacturer, or by a person who deals professionally with the construction and sale of buildings. In cases where VAT is applicable, the purchaser is not required to pay any transfer tax. The application of VAT on new buildings is currently on suspension until 31.12.2022. Important Note: due to frequent legislative amendments in taxation of property, it is strongly recommended that all property related taxes are re-visited and re-calculated before any purchase. b. Annual fiscal obligations of property owners. Real Estate Property Tax ( sic: “ENFIA” ) Any real estate property located in Greece belonging to individuals or legal entities on the 1 st of January of each year, is burdened with Real Estate Property Tax. This is the major annual tax imposed on real estate properties. Such tax is calculated on the basis of the surface of the real estate property, its location, etc. When it comes to buildings, it ranges from to 2,00 € per m2 to 13,00 € per m2, while when it comes to plots of land, it ranges from 0,003 € per m2 to 11,25 € per m2. Especially in relation to the Real Estate Property Tax for the year 2019 and 2020, the Greek Government has applied reductions of 10-30% to such Tax, in proportion to the total value of the real estate properties belonging to the same owner. For the year 2021, the exact same reductions will apply to the total amount of the Property Tax that has to be paid by natural persons. Real Estate Duty ( sic: “TAP” ) This is a special duty imposed upon real estate properties, in favour of the Municipal Authorities. It is calculated by multiplying the value of the property by a rate ranging from 0,25 ο / οο to 0,35 ο / οο . This duty is collected through the Electricity Bills of the property.
Special Real Estate Property Tax This is a special property tax imposed upon natural or legal entities residing or having their registered seat in countries with a privileged tax regime and possessing full or bare ownership or usufruct of properties located in Greece. Such tax amounts to 15% upon the value of the property. This tax has been imposed in order to deal with the phenomenon of tax evasion of offshore companies possessing real estate property in Greece. Law provides for a number of exemptions from the application of the above tax. Tax on Income from Property Rents Annual income from property rents is taxed by a rate of 15% on the amount of income up to 12.000 €, by a rate of 35% for the am ount of income between 12.001 € and 35.000 €, and by a rate of 45% on any amount above 35.001 €. Rents of properties leased for business or professional purposes is surcharged by a stamp duty of 3,6%, which however is usually paid by the lessee, subject to an agreement.
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Special Solidarity Levy Imposed on Annual Income from Property Rents
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The Special Solidarity Levy Imposed on Annual Income from Property Rents is calculated based on the sum of income coming from various sources or on the imputed income, with a rate ranging from 2.2% to 10% for income that exceeds the amount of 12.000 per year. The above levy was suspended for the year 2021 and it has been announced that it will be suspended also for the year 2022. Important Note: due to frequent legislative amendments in taxation of property, it is strongly recommended that all property related taxes are re-visited and re-calculated as need may be.
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ILN Real Estate Group – Buying and Selling Real Estate Series
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