oProperties: Transfer Tax Reduced to 3%. Who benefits
Seeking to revive the residential market and to prevent further declines in prices, the Finance Ministry is proceeding to a reduction in transfer tax. As notified via informative non paper, the tax rate will be reduced from January 1st to just 3% of the assessed value, while keeping the tax free amount for those who want to buy a house which will be their first and main residence. Thus, actual beneficiaries of this reduction will be those who buy expensive homes, second homes, cottages or commercial buildings. The transfer tax is now 8% for the first € 20,000 and 10% for the extra value of the transferred property. Thus, for an apartment of assessed value of 100,000 euros bought not for first and main residence but i.e. for investment or country house, the transfer tax is € 20,000 x 8% = 1,600 euros, plus 80,000 (the remaining amount) x 10% = € 8,000, that is to say the entire transfer taxis 9,600 euros. With the introduction of the new low rate, the transfer tax will be only 3,000 euros (100,000 x 3% = 3.000). The same amount of tax will save a company or a freelancer who buys commercial/business property of equal value. This new setting does not affect those who buy first and main residence of assessed value of up to € 200,000 as this assessed value is exempted from transfer tax; for single taxpayers the tax free amount is up to € 200,000 while for married couples the tax free amount is up to € 250,000. Increased by euros 25,000 for each of the first two children and 30,000 for each of the third and subsequent children. Beneficiaries will be those who buy first and main residence of greater value. Indicatively someone who buys a house of 400,000 euros, has tax exemption for the first € 200,000. With what is applied so far, he will pay pays transfer tax € 19,600 (€ 20,000 x 8% = € 1,600, plus € 180,000 x 10% = € 18,000). From January 1st he will only pay € 12,000 (€ 400,000 X 3%), so he will save the amount of € 7,600. o Posting of Property Tax Clearances of 2011 The Property Tax Clearances of 2011 have been posted since 11.08.2013 on www.gsis.gr (E9 implementation). Taxpayers who wish to make any corrections to their property data as these appear on the statement of Property Tax for 2011, shall have a time limit of four (4) months, since 11.08.2013, according to POL 1225/24.12.2012 Decision of the Ministry of Finance. oRenovation and repair of old private property - Reduced rate of VAT It has been clarified by POL 1241/05.11.2013 Decision of the Ministry of Finance that the reduced V.A.T. rate of 13% should be calculated on fees agreed for renovation and repair services of property which has already been used and is still used as residence or is intended to be used as residence after the said renovation .
Indicatively, repair or maintenance of plumbing, electrical, carpentry, glassware and other facilities, tiles, boilers, elevators, of facades and common areas, as well as painting walls and cavities come under the reduced V.A.T.
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