Adjustments for real estate in Greece

Adjustments for real estate in Greece

Athens, December 4, 2015/ Independent Balkan News Agency

By Olga Mavrou

The countdown for the adjustment of the fair market value of real  estate in Greece has begun, in order to end the “gap” between official prices and  the real value of the properties. The gap is up to 70% for old buildings and up to 30% for newly-built apartments.

Finance Minister Euclid Tsakalotos decided that until December 22 a committee will submit its proposals for the adjustments. The economic policy program envisages the adjustment of the “objective” values (as fair market value or guiding value  is referred to in Greece) should be completed by 01.01.2017.

It is considered probable that the new values might apply sooner, from 2016,  for the assessment of the tax that  owners pay for their properties  (ENFIA). This will also affect mortgages and “red loans” , i.e. non-performing loans.

One of the main aims of the adjustments is that the new property prices will put an end to the stagnation of transactions in the real estate market – a stagnation that begun 5 years ago, when because of the crisis the market prices started to fall, but the tax on the transactions kept being calculated on the basis of  the  old “fair market values”, resulting in disproportionate taxes.