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.