Property Taxes in Greece are the Highest in the EU

November 23, 2013 No Comments

GreekPropertyProperty owners and purchasers in Greece are obligated to pay the most amount of money towards real estate tax contributions in the entire continent. The latest Single Property Tax is expected to come into play by January 2014, and residents and property buyers are highly sceptical about their chances of survival in such an economy.

One out of every three Greeks is of the opinion that they will most likely be unable to meet the payments towards property tax. In addition, there are reports suggesting that government MPs are set to strongly oppose any revised bills that intend on raising the tax-free threshold.

The UIPI (International Union of Real Estate Owners) in Greece recently submitted a report to the EP (European Parliament), according to which, Greece happens to be the only nation across the continent to raise a yearly property tax which is almost equal to two per cent of the entire value of the property.

Moreover, other charges that are determined by and must be paid to local authorities, such as the yearly council tax on real estate assets and the special tax paid through electricity bills, are also a burden on the Greeks.

Increasing Amount of Taxes

The misery does not end there. Capital gains tax is yet another concern to deal with. In the case where a Greek property owner wishes to sell his real estate asset, he will be charged 20 per cent towards capital gains tax. What’s more? There’s the transfer tax! While countries in the European Union pay around four per cent towards transfer tax, on average, people in Greece are expected to pay 10 per cent!

Although taxation in most countries in the Eurozone focuses either on ownership or on transactions, Greece demands tax payments on both, and payments towards both are much higher in Greece than anywhere else in the continent.

An analysis carried out by Alpha Bank reveals that the latest Single Property Tax for Greek property owners will be charged at almost 1.5 per cent of Greece’s GDP. This means that the country will be listed eighth on the property taxation chart among all nations that form part of the OECD (Organisation for Economic Cooperation).

Pessimism in Greek air

On the other hand, a survey was recently conducted by the ACCI (Athens Chamber of Commerce & Industry), and it found that almost one-third of Greek citizens will find it incredibly difficult to meet payments towards the Single Property Tax. However, around 53 per cent of the population is expected to be able to fulfil all tax obligations associated with their respective properties. Another survey found that Greece has reached its worst state in terms of optimism.

The survey has been conducted every month since the beginning of the year. The pessimism levels among Greeks stood at 70 per cent at the end of October. During September, it was at 68 per cent. The country is running out of optimists as the study showed that only 15 per cent of Greece is still optimistic. The rate stood at 18 per cent just a month ago.

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