Property taxation has increased greatly in recent years in Greece, due to a government effort to accumulate public revenues. However, tax burden related to ownership, is expected to decline in 2014, as some taxes will be abolished, such as EETIDE (Electrified areas fee), and some others will be concentrated in the United Property Tax (EN.F.I.A.).
This tax is calculated in accordance with the objective value of the property and some other characteristics such as the property’s age, the number of frontages and the floor. The objective value constitutes a theoretical price per sq.m., defined by Law, and constitutes the base for tax calculation. Firstly, the basic tax depends on the zone price (objective price) of the property and ranges from 2.00€/sq.m. to 13.00€/sq.m.
Concerning the building plots, the legislator defined 25 tax zones according to the objective value per sq.m. of the plot. The amount of tax varies from 0.003€/sq.m. to 9.00€/sq.m.
Additionally, the parcels and the plots outside the city plan will be taxed with 0.001€/sq.m. Some adjustments are also realized on basic tax according to position and the use of land.
If the total value of properties exceeds 300,000€, an additional tax is imposed following a scale with tax rates from 0.1% to 1%.
According to new legislation, the rental income is going to be taxed independently of other taxpayer’s revenues. The tax rate imposed on rental income is 11% for revenues up to 12,000€ and 33% for higher income.
Property Conveyance Tax rate amounts to 3% and is calculated on the objective value. In the case of primary residence, the aforementioned tax is not imposed. Regarding newly built properties, directly bought from the developer, are liable to 23% VAT and no transfer tax is applied.
Capital Gain Tax rate, 15%, is also calculated on the difference between the selling and purchase price and is charged to the seller.