ECONOMY

Gov’t makes plans to cut property transfer tax

The government is planning to reduce the property transfer tax in order to harmonize its rate with the European Union average and in a bid to boost activity in the sluggish market.

Deputy Finance Minister Giorgos Mavraganis told Kathimerini that “in order to help bolster the property market, the government is examining the reduction of the tax.” He added, “The number of transactions has shrunk and within the fiscal abilities of the country we are examining the possibility of reducing the transfer tax by taking into account what applies in other European countries.”

The two possibilities being studied by the ministry provide for the tax to drop to 4 percent for properties (plots or houses) up to 20,000 euros, above which the rate would be 8 percent, or for a 3 percent tax for smaller properties worth up to 20,000 euros and 6 percent for any more expensive ones. Today the transfer tax stands at 8 percent and 10 percent respectively.

Although this is not very likely to bolster the housing market, it should rekindle interest in plot sales.