Addressing encroachments
The first decisions with the terms and conditions for the return of 100,000 parcels of public property to those who have encroached upon it are expected in September.
Immediately after that – and in any case before the end of the year – the Digital Governance Ministry will put into operation a special information system titled “Requests for the Acquisition of Public Properties.”
According to the law, in order to submit a redemption request, the beneficiaries will have to pay a fee of 300 euros, which is offset against the redemption price.
The redemption application must be accompanied by the following supporting documents: topographical; aerial photographs from either 1992 or earlier, or 1982 as the case may be; a document for determining the objective value of a plot of land or field; confirmation of building conditions; building permit (if it exists); excerpt of cadastral chart; and Single Property Tax (ENFIA) slips for the last five years.
If the request is approved, the acquisition of the properties will be done at their objective value, or taxable rate, however significant discounts are foreseen, which can potentially reach 80% of the value of the property.
According to the law, the acquisition of encroached-upon public property concerns the following cases: realty owned by a private individual for at least 30 years, if there are purchase or property titles and buildings before 1992, or possession for at least 40 years if there is a building (which is also the sole residence or commercial holding – e.g. handicrafts – of the private individual) before 1982.
The purchase price of the encroached properties is defined as the objective value, to which a series of discounts are applied that can even reach 80%. It is estimated that more than nine out of 10 public properties have been encroached upon, as out of a total of 97,029 registered public and exchangeable estates, 89,928 have been encroached upon – i.e. 92%.
On encroached-upon public estates there are residences and even apartment buildings, factories, warehouses, farming facilities, workshops and buildings for professional use which are either owned or rented out to third parties.
