PROPERTY

Property transfers skyrocket

property-transfers-skyrocket

The shifts in the system of how property tax is determined, known as “objective values,” and the new tax-free limit of 800,000 euros for parental concessions and donations have sent property transfers soaring.

According to the Property Transfer Value Register, in the first 10 months of the year (not including all transaction data yet) there was a 14.1% annual increase in real estate transactions in Athens. Notaries argue that over the last couple of months this year that rate is set to double and reach up to almost 30%.

The changes to objective values and the tax-free threshold have thrown many tax offices and notaries into chaos, however. Taxpayers are sometimes forced to leave the file of their parental concession applications at the document registration office as they cannot gain access to the office for capital taxation. They receive a registration number (known in Greek as “protokolo”), but tax officers inform them that the November and December applications will be examined next year. In this context the Finance Ministry is considering applying the old objective values to applications registered by end-2021, even if they get to be examined next year.