By Vangelis Dourakis

Legislation that will allow tax haircut up to 16,000 euros to those who renovate or repair their properties, brings the Ministry of National Economy and Finance to Parliament. The decision by the responsible Minister Kyriakos Pierrakakis For expansion of the relevant measure and in 2025 it is reached and the necessary procedure is left for its implementation.

Thus, those who proceed this year to renovations or home repairs and pay by electronic means of payment will have a tax deduction of up to EUR 3,200 per year by 2030, ie for the next 5 years.

Who earns ‘haircut’ tax as 16,000 euros

The request for extension of this measure was submitted by Pomida to the Minister of National Economy, requesting the issuance of the JMD for the terms of granting the costs of work and materials of 2025, up to EUR 16,000.

The legislative framework stipulates that the costs of buying goods and the receipt of services associated with the energy, functional and aesthetic upgrading of buildings reduce, equally distributed over a period of five years, the income tax of natural persons, up to the corresponding tax for each year, with a maximum of 16,000 euros.

Expenditure on materials are taken into account up to the amount corresponding to 1/3 of the amount for services.

Of course, in order to activate this particular tax reduction regime, the property owner must pay through e -bank, credit or debit or prepaid cards, electricians, plumbers, oil paints, placids, plaster and other professionals and other professionals, and the relevant evidence.

The tax deduction that the taxpayer is entitled to is equivalent to the tax year of costs in the following four (4) years, so the maximum deduction amount amounts to EUR 3,200 per year (EUR 16,000 / 5 years).

Therefore, if expenditure is incurred in 2025, then the discount applies to 2025 and for the next four years, 2026 to 2029, whereby it will reduce the final amount of income tax on income tax clearances of 2026 (2025), 2026 (2025), 2025 (2025), 2025 (2025) 2028) and 2030 (for 2029).
Middle

But what are the costs that will “measure” for the tax office, for the “haircut” of tax?

A.

a) energy

– Thermal insulation placement.
– Replacement of frames, glazing and external protective sheets.
– Installing or upgrading heating/ cooling system as well as the necessary infrastructure and elements to become fully operational.
– Installation of automatic control of the operation of the heating/cooling system.
– Installation of electricity self -production system (with energy offsetting), as well as electric batteries (batteries) when combined with photovoltaic systems.
– Installation of hot water production system using renewable energy sources (RES).
– Installation of a mechanical ventilation system with heat recovery.
– Upgrading of lighting to the public spaces of apartment building.
b) functional-aesthetic

– Installation/replacement of hydraulic installation.
– Installation/replacement of an electrical installation.
– Maintenance/roof repair.
– Masonry/coloring repair inside and exterior of buildings.
– Placing fixed or mobile shading systems.
– Upgrading or installation of a lift.
– Installation of household electric vehicle recharge points.
– Change or repair of flooring.

B.

– Thermal insulation materials.
– Frames, glazing and external protective sheets for replacement
– Electricity self -production system (with energy offsetting), as well as electric batteries (batteries) when combined with photovoltaic systems.
– hot water production system using renewable energy (RES).
– Heat recovery mechanical ventilation system.
– Hydraulic installation materials.
– Electrical installation materials.
– Masonry/coloring materials internally and externally of buildings, as well as other costs of buying goods corresponding to those of the services of approx.

The ceiling of the “eligible costs” and the total tax deduction that the taxpayer is entitled to is EUR 16,000.

The total amount of expenditure on the purchase of materials, taken into account for income tax deduction, may not exceed one third (1/3) of the total amount of expenditure for receiving services.