Local authorities request realty tax cuts
The continuation of large deviations in the taxable property rates (known as objective values) in relation to the actual prices in the market makes the objective value review process that has already started in several municipalities more difficult.
At the beginning of the year, 44% of Greek municipalities requested the reduction of zone prices, as they consider that the last adjustment, made a year ago, included excessive increases.
There are even cases of municipalities requesting the return of zone rates to the level they were at in 2018. In Attica alone, apart from the Municipality of Athens, which made the first demand, requests to reduce zone prices have also been submitted by the municipalities of Glyfada, Kallithea, Maroussi, Vrilissia, Zografou, Agios Dimitrios, Pallini and Moschato-Tavros.
Among other things, the Municipality of Athens has requested the reduction of the 50% increases that were made in 30 zones under its jurisdiction. In Maroussi, the general reduction of the objective values in areas with purely residential use has been requested, with the aim of returning them to the level they were at in 2018.
The Municipality of Glyfada has requested the immediate and significant reduction of the objective values in the entire area, given that there have been increases that reach 80%. Correspondingly, in Vrilissia, with a unanimous decision, the municipal council has requested the restoration of the objective values to the level they were at in 2021, after the increase from 18.18% to 53.57% that took place. The municipalities have submitted detailed opinions, including real market prices. If the process is repeated and new zone values are determined, they will apply from the time of the decision and henceforth. In any case, however, the price corrections will not be completed before this coming summer.
Meanwhile, the activation of the mass property valuation system is timed for the post-election period and toward the end of the year; through that system the adjustments of zone prices will be henceforth made automatically in order to normalize the functioning of the market. Since last summer, the system has been piloted to ensure that the values it produces are reliable and unquestionable.
