ECONOMY

Realty taxes and bureaucracy render ownership less attractive

realty-taxes-and-bureaucracy-render-ownership-less-attractive

Real estate has evolved into a vital pillar of the state budget, feeding it with revenues of 3 billion euros per year.

In the last few years the number of property-associated taxes has grown, such as that on rents, while the bureaucracy that goes with every transaction and even a new leases has soared, making property ownership increasingly less attractive.

The tax burden on owners has jumped from €500 million in 2010 to over €3 billion today, in a period during which the value of properties headed mostly south. Rental revenues have shrunk or vanished altogether for many owners due to the pandemic measures.