Changes to property values to affect taxes and benefits

It has been almost 9 years since the last time taxable property values changed, however the Alternate Minister of Finances Tryfon Alexiadis is expected to soon announce new values.

These new values will have a retroactive effect as of May 2015, in line with a State Council ruling, thus covering transactions carried out in the second half of 2015.

The plan for the changes is based on the findings of the relevant committee, which suggested that values in Attica and other major cities in Greece must drop by about 5% to 20%. For real estate with a value of up to1,500 euros per square meter the reduction will be 5%, while for property valued between 1,500 and 3,000 the reduction will be 15% to 20%. For property valued over 3,000 euros per square meter the drop reduction will be 10% to 12%.

The change in values however is expected to affect a series of benefits and taxes that are directly or indirectly linked to real estate property. Due to the change in values, many taxpayers miss out on the heating oil benefit, rent subsidies, free electricity, the minimum guaranteed income, student benefits and a 50% discount on the ENFIA tax.

On the other hand, a number of taxes are expected to increase, including the aforementioned ENFIA and taxes on transitions, inheritance, donations, registration in the Cadastre, urban development fines etc.

With the new values having a retroactive effect, the government must decide whether it will give out benefits to a greater number of people, or restrict the benefits.