After many months of deliberation and redrafting, the government finally publicized for discussion the latest draft of its new unified real estate tax which is means to replace a number of current taxes in 2014. It did not take long before market analysts and land owners pointed out injustices.
According to the nationwide federation of real estate owners (POMIDA) the new unified tax essentially incorporates the so-called “emergency” tax that was introduced to help combat the crisis. The federation notes that it is impossible for owners to pay taxes of up to 4 billion euros per year, after the excessive and emergency taxes.
POMIDA president Stratos Paradias welcomed the introduction of the tax identity for each asset, which he considered to be a positive step towards balancing the economy and restarting the real estate market. Mr. Paradias however pointed out that the new tax burdens unwanted land excessively and unjustly.
To that end, POMIDA has made a number of proposals:
- Buildings that have been vacant in the long term must be taxed at 40% of the normal rate.
- Tax rates on land must be halved.
- Listed and historic buildings must have a reduced rate.
- Make the acquisition of tax certificates available online.
- Allow cuts and discounts for taxpayers with debts generated by the current real estate taxes.
- Increase the discount for paying taxes in one lump sum from the “symbolic” 1.5% to 10%.
- Allow taxpayers to unilaterally cede property to the state in lieu of taxes
