May 25, 2024

Athens News

News in English from Greece

Program "Renovate – rent out": criteria and conditions, who are the beneficiaries

Program “Renovate – rent out” aims to bring approximately 12,500 closed properties to market after their owners receive a matching subsidy for renovations and energy efficiency improvements.

The new program will help thousands of owners of older houses and apartments upgrade and renovate them to make them fit for use, as long as they rent them out for at least three years.

Criteria and conditions

According to the relevant ministries, about 12,500 empty residential premises can take advantage of the program provided that their owners complete the necessary procedures. In particular, the state subsidy is 40% of the cost of work and materials, and the maximum subsidy amount is 10,000 euros.

Residential premises (houses, apartments) cannot be larger than 100 m2 and must be located in a residential area. It is a prerequisite that all work and materials must be purchased with regular invoices, which must then be submitted electronically to avoid tax evasion. If someone renovates their property using black money and without receipts, they will not be able to get the subsidy.

At the same time, after repairs are carried out, the homeowner must lease the property for three yearsand to prove this, when submitting invoices for the subsidy, it is necessary to provide an electronic lease agreement confirming that it has already found a person or people to rent the house.

Who is the beneficiary of the “Renewal – Rent” program?

As for the beneficiaries, they are the owners or usufructuaries of real estate with residential purposes, provided that:

  1. they have ownership or usufruct of the property exceeding 50%,
  2. the property has an area of ​​up to one hundred square meters and is located in a residential area,
  3. they have an annual family taxable income, actual or imputed, that does not exceed forty thousand (40,000) euros, and own real estate whose total value does not exceed three hundred thousand (300,000) euros,
  4. the property was not declared as a main residence, as a rental property and as an empty space on Form E2 attached to the income tax return for the last three years;
  5. they have not received a subsidized energy conservation program or renovation of a property they own in the past five (5) years and have not participated in a subsidized energy conservation program for any of their properties.

It is worth noting that if an apartment or house has been in an uninhabitable condition for many years, and now we are talking about such residential premises, 10 thousand euros will most likely not be enough to pay for materials and builders for work, given the “white” nature of payments and VAT 24% for work. Moreover, the money will need to be paid immediately, and the subsidy, as is customary in Greece, can be paid later, sometimes noticeably later.

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