ECONOMY

New property tax plan cuts rates on cheap areas

The latest version of the draft for the new single property tax, to apply as of 2014, provides for a further reduction of total tax imposed by 350 million euros, to 3.5 billion. The reduction will concern plots of land by 250 million euros, while 100 million euros will be shaved off the tax on houses.

Finance Ministry officials said on Monday that in the next few days the government will present to its creditors fresh data on the state mechanism’s ability to collect the new property tax in order to curb the creditors’ objections regarding the reduction on the charge imposed on property owners.

The new plan provides for a slight lightening of the load for home owners in areas with a low objective value – i.e. the house price used for tax purposes – ranging between 501 and 1,750 euros per square meter. On the contrary the tax will grow even higher for the owners of properties with an objective value rate ranging between 3,251 and 4,2509 euros/sq.m.

Similarly, there will be less tax for plots of land ranging between 2 and 150 euros/sq.m., while a major increase is imposed on plots with a high objective value.