ECONOMY

Property tax changes keep investors away

property-tax-changes-keep-investors-away

Property taxation is set to undergo radical changes over the course of 2016, dealing another blow to any prospects of the local market’s recovery.

Sector professionals stress that the dozens of changes already introduced by the government in the area of real estate have only generated confusion and disappointment among potential investors in recent years, and they say that will continue in 2016. Therefore, the few remaining potential investors will likely postpone any decisions, at least until after the tax changes have been completed and the picture becomes clearer.

The most significant changes this year will concern the revised objective values – the property rates the state uses for tax purposes – as they will affect a great number of taxes which are based on them. However, the Hellenic Property Federation (POMIDA) has expressed concern that the reductions in objective values that have been promised will only be for appearances’ sake.

“There may even be some objective value hikes, in order for the government to comply with the verdict of the Council of State, but only according to the letter [of the law, and not the spirit],” warned POMIDA president Stratos Paradias, who also fears a rise in property tax rates.