Of Chrysostom Chufi

The Ministry of Finance has decided to extend the measure that provides for a deduction from income tax on energy, operational and aesthetic upgrading of buildings. The extension will definitely concern in 2025 – the validity of the measure exhibited on December 31, 2024 – and is seriously examined – according to information – by the Deputy Minister of Finance George Kotsira and the extension for 2026. In any case, the relevant arrangement will be included in the law on additional measures of € 1.1bn (rent refund, 250 € allowance to pensioners and increase in RIP) expected in the coming days.

The extension of the measure was also requested by Panhellenic Federation of Property Owners which judges the measure particularly positive. Expenditure deduction has been valid since 2020 and has suffered a double lifting to stimulate the real estate market at a time when the problem of housing is in exacerbation.

Thus the tax is no longer reduced by the costs related to the receipt of services, namely the labor and the purchases of materials needed for materials. (The amount of expenditure for the purchase of materials taken into account for tax reduction should not exceed 1/3 of the amount of expenditure for the receipt of services taken into account for tax reduction).

In addition, tax reduction has increased significantly and now reaches 100% with a maximum of € 16,000 from 40% and € 6,400. The discount is shared in the next 4 of the years.

For example, for € 16,000 to be done this year, there will be a tax reduction in the years 2026-2027-2028-2029-2030 by 16,000/5 = 3,200/year (with the old regime the discount was distributed in 4 years, that is, it did not exceed 6,400 €/4 = 1,600 €/year). So practically we have doubling the annual tax deduction.

Conditions to receive tax deduction include:

-To evidence and legal documents for the work and the purchase of the necessary materials and their payment has been made electronically (credit, debit or prepaid cards, web banking)
-The eligible costs should not have been deducted from gross business income (you can’t tax 2 times from the same expense)
-The upgrading interventions for buildings that have not been integrated or will not be integrated into building upgrades or other grant actions.
-In cases of co -ownership, the maximum total cost limit and therefore the reduction of income tax is limited on the basis of the rate of full ownership of the natural person who made the expense.
-In the case of usufruct or ownership of the building, costs and tax deduction are limited to the value of the right to the total value of the property.
-If the amount of the taxpayer is entitled to the taxpayer is greater than the tax, the surplus amount is not refunded, is not offset by another tax liability, shall not be transferred and not deducted in the following tax year, nor shall it be transferred to the other spouse or the other part of the cohabitation.

For the functional/aesthetic upgrade of the building eligible expenses are considered as follows:

-Peting/replacing an electrical installation
-Phosestration/replacement of hydraulic hell
-A maintenance/roof repair
— Masonry repair
— Painting interior and external
— Recovery-install annexor
-Alching/repair of flooring
-Coving fixed or mobile shading systems
-Astum of household electric vehicles recharge

For the energy upgrading of buildings the costs recognized are:

-Expact/upgrade heating/cooling systems and control devices
-Reptics of frames, glassware and external protective sheets
-Recovering lighting of public spaces (for apartment buildings)
-Exput of mechanical ventilation system with heat recovery
-Exput system for hot water production using RES (renewable energy sources)
-Exclaration of electricity self -production system (with energy offsetting) as well as electric batteries (batteries) when combined with photovoltaic systems