By Vangelis Dourakis

Closed the “window” giving the right to reduce tax up to 3,200 euros to those who spent on the costs of renovation of their residence or their professional space. The power of that measure, was not renewed For the current or subsequent years, so only those who did work in 2024 were guaranteed the discount only. But they still did not know the amount of tax exemption, as the state had not issued the decision!

It is noteworthy that the decision of the Ministry of National Economy and Finance, which set the terms and conditions for this tax exemption, instead of being issued at the beginning of last year, was signed on December 20, 2024 and published in the Government Gazette in the Government Gazette in the Government Gazette. December 27just four days before the end of the tax year!

Who prevented the tax deduction

In other words, those who prevented to perform their property renovation tasks within 2024 -And only they- they had the right to tax exemption, but by the end of the year they were not too … sure if they met the conditions to “win” it all!

This measure was legislated in December 2023 and provided that the costs of residential and other buildings for energy, operational and aesthetic upgrading of their real estate would reduce the tax on 1 January 2024 (with a threshold of 16,000 euros). Owners’ income for the next five years.

This means that the total expenditure they paid in 2024 is distributed equally in the years 2025-2029 and will reduce the income tax that will be certified against the owner in each of those next 5 years.

Thus, if someone paid a renovation of the property of EUR 20,000 in 2024, the benefit is limited to 16,000 euros, with his tax decreasing for the next five years by 3,200 euros.

For exampleIn the case of a taxpayer spending of 15,000 euros in 2024 he will save a tax of EUR 3,000. Each year by 2029 its tax will be reduced by 3,000 euros.

Calculating the deduction shall take into account the costs of work and costs for supplies of materials.

Necessary conditions for the deduction of energy, operational and aesthetic upgrading of buildings from the owner’s income tax are the buildings for which the expenditure is not already integrated or will not be integrated into a building upgrade program.

Which “cutters” includes the decision of the … last minute

However, the decision issued at the end of 2024 also contained “surprises” as it includes parameters that “cut” from the right to deduction several property owners who have renovated residential or offices.

Specifically, the “cutters” of the joint decision of the Minister of National Economy and Finance, Kostis Hatzidakisof the Deputy Minister, Christou and of the RIS, Thodoris Skylakakis are the following:

  1. Expenditure on the purchase of goods and receiving services associated with energy, operational and aesthetic upgrading of buildings reduce equal divisions over a period of five years, the income tax of natural persons, up to the corresponding tax for each tax year. Here it should be noted that “Tax is the tax that arises when income scale tax deducts the reductions provided by law, as evidenced by the Act of Administrative/Correction of Income Tax”. That is, if the amount of the reduction of the taxpayer for the relevant tax year is greater than the tax on it, the surplus amount is not refunded, not offset by another tax liability, not transferred and not deducted in the next tax year, not transferred to discount to the other spouse or other part of the cohabitation pact.
  2. In the event of co -ownership, the maximum total of deductible expenditure and the deduction of income tax are limited on the basis of the full ownership rate of each natural person who paid the expense. In other words, if the property has co -owners of the spouses, separate tax evidence had to be issued in the name of each of the two spouses to earn the maximum possible discount rather than to issue proof to one of the two spouses.
  3. In the event that the natural person who paid the expenditure has the right of usufruct or ownership of the building, the maximum total cost of expenditure and the reduction of income tax shall be limited to the value of the right to the total value (objective) of the property. That is, to earn the maximum of the deduction that both the usufructuary and the fine owner of the property are entitled to, since they both did the costs should have requested the tax information to be issued separately in the name of each, with the costs proportionally in proportion to each one.