Property taxation in GreeceNews | 24-02-2014 16:50
The Law 4.223/2013 for property taxation in Greece, came into force the last day of the year for the taxation of properties for the year of 2014. This law is against the Greek Constitution, since does not take into consideration the value of the property, but the value of the assessed value which is being used in order to calculate the tax band of the property. So, you may have a property with a value of 200.000 euros in a cheap area and a value of 200.000 € in an expensive area and pay even 10 times higher tax. This is an outstanding taxation which soon is anticipated to be judged anti-constitutional in higher courts, since it abolishes the fundamental principle of taxation concerning progressinve taxation. Furthermore, it doesn't take into consideration the total wealth of each person. Given also that the assessed values are outdated (values are sometimes 100% higher than market values), it is clear to everyone that the law is completely distorted.
However, this law reduced significantly the property transfer tax from 10% to 3%, which increases the mobility of Greek citizens and also helps increasing the declaration of the transfer price and thus the contract price rationalization, abolishing the previous system of declaring the assessed value, which in the past was even 50% lower than the market values.