Selling real estate for four times its face value

Despite the energy crisis, about 900-1000 declarations of purchase and sale are made daily through the myProperty online platform.

Revenues to the state treasury from the sale of apartments and land increased by 35% in the 9th month of the year, according to the Independent State Tax Service. Athens, Piraeus and Thessaloniki lead the way with phenomenal sales growth compared to last year. In particular, in the center of Athens, the transfer (donation, sale) of real estate, according to the Register of Real Estate Transfer Value, exceeded 4,000 compared to 3,769 in the 10th month of 2021. At the same time, the corresponding figures were recorded in Piraeus and Thessaloniki.

It is noteworthy that there are cases of particularly expensive sales. For example, an apartment of 123.98 sq.m. was sold in the area of ​​the 1st district of Athens. from 30 sq.m. ancillary premises for 1 million euros. The price of the zone in this area is 4250 euros, and the sale price has reached 8098 euros/sq.m. Also in such areas of Athens as Ano Patisia and Agios Eleftherios, 2 apartments were sold, one of them with an area of ​​92.05 sq.m. 2020 for 273,426 euros. The price of the zone in this area is 1600 euros/sq.m. and the sale price reached 2443 euros/sq.m.

However, there are also cases where the sale prices exceed any previous figures. Specifically, an apartment of 34.55 sq.m., built in 1966, is for sale at a price of 250,000 euros / sq.m. That is, the cost of sq.m. reached 7235 euros at a zone price of 1300 euros/sq.m. There is another case in the register of real estate transactions about an apartment with an area of ​​35.10 sq.m. which was sold for 7122.51 euros/sq.m. or 250,000 euros.

The recent boom in real estate transactions increased government revenue by 35%. In most cases of sale and purchase, despite the recent revaluation of objective values ​​that came into force in January 2022 and approached the sale prices, the contracts show, at least for Athens, a higher price. And this is despite the fact that in the city center there are buildings of the 1950s and 1960s, which also limits the final objective cost of the object. It is noted that out of approximately 4,000 real estate transactions made in the municipality of Athens, 700 relate to small apartments ranging from 30 to 50 sq.m.

It follows from the AADE data processing that between January and September, real estate sales revenue (excluding land) amounted to 235.77 million euros, compared to 175.23 million euros in 2021, and land 74.5 million euro against 54.13 in 2021. In total it was received state. organs 310.27 million instead of 229.36 million euros, which means an increase of 35.2%. It is noted that the bill of the Ministry of Finance, which is under public discussion, the government is trying to further stimulate activity in the field of buying and selling real estate. In particular, the bill provides:

1. VAT on real estate: “freezing” 24% VAT for another two years. At the request of the developer, the application of VAT to immovable property is forcibly suspended and a tax on the transfer of immovable property is introduced. The suspension applies to all unused properties of the developer. The suspension until 12/31/2022 is extended until 12/31/2024.

2. Real estate capital gains tax. The introduction of a capital gains tax of 15% on the sale of real estate has been suspended until December 31, 2024.

3. Renovation: Until the end of 2024, the 40% tax deduction for citizens’ expenses for the energy, functional and aesthetic modernization of their buildings is extended. In particular, a personal income tax deduction is provided for building modernization costs incurred up to and including December 31, 2024, instead of the planned date of December 31, 2022, distributed equally, as is currently the case, over four tax periods and for the maximum total expenses up to 16,000 euros.

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