New property tax in the mail

By Prokopis Hatzinikolaou

The first payment notices for the new Single Property Ownership Tax will start dropping into the letterboxes of about 5 million owners next month. It will be payable in six monthly tranches.

The first installment of the tax to replace the previous FAP levy and the special property tax tagged on to electricity bills will have to be paid by July 31. The other five are set for the months to follow, ending with the last one that will have to be paid by December 31, 2014.

The new tax will apply for farmland and legitimized buildings for the first time, although agricultural and farm buildings will be exempt.

The majority of people who own buildings will now pay less than has been the case in the last three years. However, those who own even a small plot of farmland, who to date have been exempt from paying, will now have to pay property tax to the state.

Any property owners whose asset status has changed will have to submit the E9 electronic form for their Single Property Ownership Tax to be calculated. Submission should be conducted electronically by the taxpayer himself and it is only in cases where the owner has died that the form can be submitted in handwriting by others to the responsible tax office official. Changes between January 1 and May 31 must be submitted by June 30.

The constant updating of the E9 database will begin as of July 1. The deadline for the submission of updated details on property ownership will be within 30 days of the date of the asset change.

Owners of properties with an objective value of over 300,000 euros will also have to pay the Supplementary Tax, ranging from 0.1 to 1 percent of the value.