ECONOMY

New tax on property to add burden

The government is planning to introduce a new, and hefty, single tax on property as of 2014, which while broadening the tax base will add a significant burden on owners, as every piece of property will be taxed individually.

This means, for example, that someone owning a house and a farm will pay more tax in 2014 than this year. Taxpayers who will benefit are those who own one property valued up to 150,000 euros. All other categories of owners will see their tax burden grow, and there will be no tax-free level.

The proposal put forward last week by the Finance Ministry provides for the tax to be calculated based on a rate of euros per square meters for buildings, factoring in features such as zone rates, as well as for farms, even those cultivated by professional farmers. The only property owners to receive and exemption will be the long-term unemployed and taxpayers with incomes below the poverty line.

Based on this scenario the ministry will issue notices adding up to 3.16 billion euros of taxes, while the net sum expected to be collected amounts to 2.7 billion euros. This tax will replace the existing FAP property tax and the special property tax paid through electricity bills.