New laws to regulate real estate purchases in Greece
What does the new law bring in the Greek real estate market
The draft law “Measures to limit tax evasion” that aims at handling issues of tax evasion in the country, was set by the Ministry of National Economy and Finance in public consultation, until Monday November, 27th.
The new law introduces, inter alia, new regulations to prohibit the use of cash in real estate property transactions, as well as doubling tax exemptions effective to date, in case the taxpayer decides to renovate their property.
The draft law includes,
- the ban on the use of cash in real estate property transactions,
- real estate property transactions will be financially facilitated through the banking system,
- contracts for real estate property transactions that refer to partially paid total considerations will be declared void
Meanwhile, a series of new regulations are being introduced for the energy, functional and aesthetic upgrading of buildings.
Expenditures for goods and services related to the energy, functional and aesthetic upgrading of buildings, that have not already been comprised or will not be included in a building upgrading program, will reduce, in equally portions over a five years period, the income tax of natural persons, up to the corresponding annual tax, with a maximum total expenditure limit of 16,000 euros.
It should be reminded that, under the current regime, 40% of the expenditure is deducted (this limit is abolished by the bill) and only the costs for works are taken into account, while the costs for materials (which are included in the new bill) are not.