Until January 31, taxpayers have the opportunity to sign contracts with the so-called. the “old value” and electronically submit the corresponding declarations on the myProperty platform.
From January 1, the race begins for thousands of taxpayers, who again rush to notary offices in order to have time to sign sales and purchase agreements, formalize inheritance and real estate donation agreements. In order not to be late until January 31, 2022, do it with the old ones, the so-called. fair prices.
Those who did not manage to submit the relevant applications electronically on the platform before the beginning of 2022 myProperty, there is very little time left. For these taxpayers, the transfer tax, as well as the costs associated with the transfer of real estate, will so far be calculated based on zonal prices that were in effect until December 31, 2021. However, those who did not meet the deadline will have to pay real estate transfer tax based on the new objective values that have been activated since the new year in 13,808 districts-zones across the country.
For areas where objective values have increased, the property transfer tax increases by more than 50%, with the greatest burden arising for those that were first included in the system of objective determination of the real value of property.
To make life easier for taxpayers, the Electronic Building Identity program has been extended until the end of January 2022, and the transfer of property will be carried out using a simple certificate from an engineer.
At the same time, the IRS has stepped up its efforts to review thousands of pending sales, inheritance and donation applications. Handwritten declarations of inheritance and donation agreements of real estate submitted to the tax authorities before December 17, 2021, as well as declarations on the transfer of real estate that cannot be submitted to the electronic platform myProperty AADE, received a priority in order not to allow taxpayers to remain with the old objective values until January 31, 2022.
In particular, the tax authorities must complete by January 21 the liquidation of handwritten inheritance and gift declarations submitted before 12/17/2021, as well as real estate transfer tax and inheritance / gift declarations that cannot be sent as originals to myProperty.
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New objective assessment
Map of the so-called. objective assessment has changed since the beginning of 2022 throughout Greece. In every second region, prices have increased, which has led to an increase in a number of taxes, fees and fines. The so-called fair value declined in about one in five regions, while prices remained unchanged in one in four.
In Attica, prices in the new zone have been increased to 95% in the center of Athens, to 76% in Chalandri, 75% in Daphni, 62% in Anavyssos, 60% in Agios Dimitrios, 57% in Elliniko, 53% in Glyfada and 41% in Zografu … Herodes Atticus owns the scepter of the capital’s most expensive street, where the price in the zone has jumped to € 10,200 from € 9,000, while Limos Vouliagmenis maintains the glamor of the most expensive area, where the pool tax has skyrocketed from € 8,900 to € 10,800.
The highest growth was recorded on the island of Ithaca, by 250%, as the price in the zone rises from 600 euros per sq. M. To 2100 euros. In three zones of Mykonos by 229% (from 1200 euros for 3950 euros), in Rhodes by 200% (from 700 euros to 2100 euros), on Kos by 108% (from 650 euros to 1350 euros), on Kassandra, Halkidiki at 94 % (from 800 euros to 1550 euros), in Lagonisi – 93% (from 750 euros to 1450 euros), in Kefalonia – 79% (from 700 to 1250 euros), on the Heraklion peninsula – 75% (from 600 euros to 1050 euros ), in Anavyssos 62% (from 1050 euros to 1700 euros), in Maroussi by 54% (from 1300 euros to 2000 euros)
Tax
In areas where zone prices have risen, the property transfer tax has risen sharply. When buying an apartment of 70 square meters in the far from the most expensive metropolitan area of Zografu, where the cadastral price in the zone was 1,450 euros per m2, now it is 2,050 euros per m2, and the transfer tax rises from 3,045 euros to 4,305 euros (an increase of 41 ,4%).
In regions where “fair value” is declining, sales will now be “cheaper”. For example, an apartment of 120 square meters in the rather expensive metropolitan area of Penteli, where the minimum price has been reduced by 20%, from 1750 euros to 1400 euros per m2, the real estate transfer tax, which was 6300 euros, has dropped to 5040 euros. Thus, the exemption for the taxpayer reaches 1260 euros.
Second phase
It is expected that in 2022 the Greek Ministry of Finance will “launch” the second phase of reforming the system of objective determination of the value of real estate. This phase aims to create a system that will track trends in the real estate market, ensuring that the “fair value” does not deviate from the market.
This will be achieved by automatically updating the fully digitized value zone mapping system at regular intervals and creating an appropriate platform. In this context, technical assistance is provided for the development of appropriate procedures and tools.
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