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The new objective values of the properties are being implemented, as the relevant ministerial decision for their adjustment was signed.
According to an announcement issued by the Ministry of Finance, the ministerial decision stipulates that prices from 400.00 to 650.00 euros, as well as prices from 4,050.00 to 8,800.00 euros remain unchanged, while in all other band price groups the current prices are reduced from 5% to 19%. The decision will, in fact, have retroactive effect from 21/05/2015, thus implementing a relevant decision of the Council of State on the adjustment of objective values with retroactive effect from the specific date.
Consequently, the new zone prices will affect taxes and bonuses, which are related to the objective or imputed income determination.
According to initial estimates, the changes that will take place in the zone prices after the changes in fair values, are as follows:
1. In areas with zone prices up to € 650.00 there will be no change
2. Small reductions of 7% will be made in areas with objective values from 651.00 – 1,000.00 € / sq.m.
3. Reductions of 15.5% in areas with a zone price from 1,000.00 – 1,500.00 € / sq.m.
4. Reductions of 19% in areas with a zone price from 1,500.00 – 2,000.00 € / sq.m.
5. Reductions of 18.5% in areas with a zone price from 2,000.00 – 2,500.00 € / sq.m.
6. Reductions of 16.5% in areas from 2,500.00 – 3,000.00 € / sq.m.
7. Reductions of 9% from 3,000.00 – 3,500.00 € / sq.m.
8. Reductions of 5.5% for areas with a zone price from 3,500.00 – 4,050.00 € / sq.m.
9. From € 4,050.00 and above there will be no change
Even based on these objectives, the new EN.F.IA will be calculated. of 2016 as well as the additional tax. Ο ΕΝ.Φ.Ι.Α. of 2015 does not change as it is calculated with the objective values that were valid on January 1, 2015.
Changes in fair values will result in appropriate adjustments:
1) In the tax on real estate transfers, calculated at a rate of 3% on the fair price, for the purchase of a first home, land or agricultural plots and generally houses with a building permit before 2006. This means that in areas where prices will fall , the transfer tax will be automatically reduced and the opposite will happen where there will be an increase in prices.
2) In inheritances, parental benefits and donations, where the tax is calculated at rates of 1% -20% on the objective price and depending on the degree of kinship and the value of the property.
3) The living presumptions that apply to the residences and which are calculated according to the zone price and the area of the property. Depending on the change in the objective prices, the living presumptions will also be adjusted.
4) The minimum amount of rent that the landlord must declare to the tax office and which is calculated at a rate of 3.5% on the objective value of the property per square meter of the house.
5) In VAT for the purchase of newly built real estate, except the first residence, with a construction permit from 1 January 2006 onwards, which is calculated at a rate of 23% on the fair value of the property.
6) In the TAP collected by the municipalities with a rate of 0.35 ‰ based on the objective value and the area of the property.
7) The 15% tax imposed on the goodwill of real estate, which arises from the difference between the objective acquisition price and the sale.
In terms of taxes and fees, which will be affected by the revaluation, are:
1. Imputed income for own use of a home – professional housing
2. ΕΝ.Φ.Ι.Α. per asset
3. Real estate fee (TAP)
4. Additional tax on total property with a tax-free amount of 300,000 euros
5. Offshore companies real estate tax
6. VAT change of newly built buildings and consideration
7. Real Estate Transfer Tax (FMA)
8. Usage tax
9. Exchange tax
10. Real estate distribution tax
11. Municipal real estate transfer tax
12. Fees of the Legal Fund
13. Additional contract transfer fee
14. Real estate donation tax
15. Inheritance tax or Parental provision of real estate
16. Fee for registration of real estate in the National Land Registry
17. Urban preference for maintaining arbitrary
18. Urban preference for the construction of new arbitrary
19. Objective living cost to the owner of the rented house α ’+ β΄
20. Contributions to land and money for inclusion in a City plan (Law 1337/83)