Constant changes in the property tax bill

The filing of the property bill in the Greek parliament has become very suspenseful. The publication of the new tax is deferred for the next week as the Finance Ministry plans to finally present a "3 in 1" bill to catch up with the voting dates before the prorogue of parliament on December 21-22.

The draft of the new tax changes constantly in consultation with the Troika, but should also be consistent with ND and PASOK MPs. It will probably incorporate two more tax bills, with changes in income tax and fines of the Tax Procedures Code.

If the bill eventually gets filed next Thursday, the time remaining for the parliament to discuss and vote will be minimal. Due to the size of the bill, it seems impossible there will be any time for significant changes, so MPs will be found in the dilemma whether to vote for it without changes or to down vote it, causing problems with unpredictable effects on the cohesion of the government and its supporting parties.

The problem is that many ND and PASOK MPs insist on their positions that farmers or specific categories of property owners should not be taxed.

Which taxpayers lose and who will “survive”

In its current form, however, the bill is tricky, especially for those who have residential real estate (including townhouses), holders of land parcels (currently under tax exemptions) and other irrigated areas throughout the country.

But a strong blow will be given to those who have unused and vacant properties, despite the fact they are not electrified and do not produce any income to their owners.

The final draft bill of the Single Tax Property provides for a heavy burden for those with small and medium property:

-       taxpayers who own middle value houses in urban areas and parcels in areas outside city plans will pay more tax under the new system: a) Single Property Tax on houses and b) tax on land plots too on which the houses are built as well as in parcels

-       plots will be double taxed, with the main and the complementary Single Property Ownership Tax, while with the current system they are burdened only with the property tax

-       parcels will be taxed for the first time, as until today they were exempted. Things get worse for irrigated land parcels with annual crops (cotton, wheat, etc.)

-       significant additional charges will also apply to those with non-electrified plots of an unfinished or finished condition, which do not bring any income to their owners. These owners will pay taxes for the first time.