BUSINESS

Revenues from properties in a steady nosedive

PROKOPIS HATZINIKOLAOU

TAGS: Property, Taxation

Greece’s real estate market has been dealt a double blow in recent years: From 2010 to 2015 incomes from properties declined by 2.8 billion euros, while taxes have reached an annual average level of 3.18 billion.

In 2010 there were 1,694,684 taxpayers with revenues from real estate amounting to 8.87 billion euros. Five years later they numbered 1,496,301, i.e. almost 200,000 fewer, and the revenues declared came to just 6.05 billion.

The constant contraction of revenues from properties explains the large stock of apartments in the market and the reduction in property prices, whether these concern sales or rentals.

Overtaxation, however, has been the biggest factor in the demolition of one of the most robust pillars of the Greek economy in the past. Properties, which were a sound investment in the 2000-2008 period, are now a burden to owners who have to pay huge taxes every year just for having them in their possession. From 2010 to 2015, property taxation skyrocketed 613 percent.

This situation is expected deteriorate further this year. The tax rate for revenues from properties up to 12,000 euros per year has increased from 11 to 15 percent, meaning a tax hike of 36.36 percent. Therefore, a taxpayer with rental revenues of 10,000 per year paid 1,100 euros in tax up to last year and will now pay 1,500 euros.

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