New municipal levy of 0.5% on building permits

According to the Ministry, the introduction of this levy is deemed necessary, as the expansion of construction activity generates increased demands for services related to urban planning, infrastructure development, and building control.

However, engineers and construction professionals contacted by RED argue that the new charge further increases already high construction costs, which in recent years have been burdened by rising prices of materials, energy, and labour. They maintain that the imposition of additional financial burdens may discourage investment and slow down construction activity, particularly at a time when the real estate market is attempting to maintain its momentum.

Specifically, the levy is imposed in favour of municipalities within which an approved city plan exists, and applies to every permit for the construction, completion, extension, addition, or alteration of buildings.

The charge is calculated on the value of construction works for which the permit is issued, as reflected in the approved project budget, and amounts to 0.5% of the portion of the budget exceeding €290. Payment is made on the basis of an official copy of the approved budget issued by the competent Urban Planning Authority (Υ.ΔΟΜ.).

A building permit shall not be issued by the Urban Planning Authority, nor shall it be considered valid, unless the applicant submits a receipt of payment of the levy in favour of the respective municipality, with the receipt number and date recorded on the permit.

The levy is paid to the municipal treasury based on a note certified by the Urban Planning Authority. The revenue generated is earmarked exclusively for the execution of public works and land expropriations for the implementation of approved city plans.

Exempt from the obligation to pay the levy is the Public Employment Service (DYPA) for the construction, completion, extension, addition, or alteration of buildings used for the housing protection of the country’s workforce.