PROPERTY TAXES
All Greek property owners are liable for property
taxes with the exception of Greek citizens and foreign
residents buying their first property in Greece,
who are exempt for a period . Otherwise, tax is levied
at a rate of between 0.25 and 0.35 percent on a property's
market value by local municipalities, who also charge
other fees and taxes to pay for local services, either
directly or indirectly .
A kind of wealth tax on property was re-introduced
in Greece in 1997(it had been formely been abolished
in 1993) and applies all the individuals and legal
entities owning property there valued at over 205,000
EURO, although there are allowances for families
and those with children. Allowances are 410,000 EURO
for a couple and 52,000 EURO for each child. After
the deduction of allowances, tax is payable on a
progressive scale ranging from 0.3 per cent to 0.8
per cent, as shown in the table below:
|
| Taxable
Amount ( Euro) |
Tax Rate (%)
|
| |
|
| Up
to 148,580 |
0.3
|
| 148,581
- 297,160 |
0.4 |
| 297,161
- 445,740 |
0.5 |
| 445,741
- 742,900 |
0.6 |
| 742,901
- 1,040,060 |
0,7 |
| Over
1,040,060 |
0.8 |
|
|
|
|
This
means that a couple with two children (with a total
allowance of 514,000EURO ) owning a house worth 750,000EURO
would pay tax only on 236,000EURO - the first 148,000EURO
at 0.3 per cent ( = 445,74EURO ) and the remaining
87,420 EURO at 0.4 per cent (=349,68EURO) making
a total tax bill of 795,42EURO.
For companies and other legal entities there is a flat rate tax of 0.7 per
cent on the value of property in excess of 51,625.In this case there are
no allowances, although there are certain exemptions e.g. when a company
uses a property for the production or commercial activities .Hotels are
taxed at 50 per cent of their value.
|
Welcome
Legal
matters in Greece