ECONOMY

Luxury tax makes a comeback

Owners of cars with an engine capacity of 1,929 cc or over, swimming pools or aircraft will be expected to pay the special luxury item tax at the end of the year, probably in one installment, unless the finance minister decides otherwise. This means that owners of powerful cars will not only pay their road tax in December but also the new luxury tax, ranging between 5 and 10 percent of the so-called objective value of their vehicle – used for tax purposes.

The luxury tax, which had also been imposed in 2011 for just one year, is expected to fetch between 100 and 130 million euros this per year and is permanent.

Just for this year, the luxury tax will be ascertained through a special slip to be sent to taxpayers, while as of next year it will be sent to them and paid along with income tax.

Taxpayers with a five-year-old car of 1929 cc will have to pay 418.70 euros, while owners of 3,000 cc vehicles must pay 1,780 euros. Notably, vehicles that have been circulating in Greece for more than 10 years are exempt from the tax, as are those used by people with disabilities, which are also exempt from road tax.

The luxury tax not only concerns people with airplanes or helicopters but also the owners of gliders. Its amount will be twice as big as it was in 2011, totaling 10 percent of the objective value of each aircraft. The same rate will apply to swimming pool owners, meaning that a pool of 30 square meters will be taxed at 480 euros.