Window for reduction of objective values ​​- VAT and capital gains tax on “freeze” until 2025


What are the provisions of the new mini-tax bill that is already in public consultation?

By Akis Tsoufis

Window for reductions in objective values of some areas, a provision of the mini-tax bill – which is already in public consultation – opens, according to which municipalities that consider that the objective values ​​of their territory are disproportionately high are given the right to submit objections between December 1-31.

Of course, the municipalities had this right – and it was of key importance – throughout the process of determining the new objective values. However, as pointed out by the Ministry of Finance, only 1/10 municipalities chose to exercise it and influence the final result. But even after the announcements of the objectives, there were few municipalities that reacted and mainly their objections will be checked. So in Nikis they make it clear that we are NOT talking about a total lift in the objectives but about targeted reductions in areas where there are obvious increases that are not in line with the course of the market and which are proven.

In other words, it is not enough to express the opinion of the respective Municipality that “you know, the objective values ​​are too high”, but evidence is also required from sales that leave no doubt. A process that requires time and effort and it is doubtful if it can be done in just 1 month and with the human resources not being sufficient in many cases. If after all this the process is run again and different, lower values ​​are obtained, these will not be applied retroactively.

The bill maintains for 2 more years on ice until the end of 2024, the VAT on new buildings. It concerns properties with a building permit from January 1, 2006 which, if transferred by the end of 2024, will not be charged with 24% VAT but with a 3% transfer tax on the objective price or the actual sales price.

On ice until the end of 2024 and the capital gains tax in real estate transfers. The law provides for the imposition of a 15% tax on the capital gain – if it arises – between the sale price of a property and the price it was acquired.

Normally for the years 2023 and 2024 the discount of 40% of energy or functional upgrade costs will apply for the 4 years following the year in which the costs were incurred.

The maximum total expense limit recognized is €16,000. So the maximum amount of deduction cannot exceed €6,400 (40% of €16,000) and therefore, the maximum amount of tax deduction that the owner is entitled to in each of the 4 years of validity of the deduction reaches €1,600 (1/4 of €6,400).

Another arrangement extends until the end of June 2023 the reduced VAT in catering, transport, tourism and culture.

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