Minor changes in the “official” value of land in Greece

Minor changes in the “official” value of land in Greece

Athens, January 21, 2016/ Independent Balkan News Agency

By Olga Mavrou

Greek government changed the official reference value of real estate for the first time in a decade, that is,  it  lowered  the value that is used mainly to estimate taxes per square meter  and which in Greece is called “objective value” –comparable to “fair market  value” or “guiding value”.  Those  values in Greece were as much as 50 or even 70% higher then the real, market values.  So many transactions were overtaxed, and if somebody bought, lets say  an apartment that was sold because of the crisis  for just  20,000 euros,  the taxes were estimated as if it was  bought  for 40.000.

The new values (5 to 20% lower then the old ones) do not correct the enormous gap between real and official values. One of the main reason is that if the government proceeded in lowering the prices targeting the real value of properties in the actual transactions, then there would be considerable losses in the taxes the state collects from real estate market.

As IBNA had reported 2 months ago, the values were not lowered at all in very cheap and very expensive areas  (nothing changed where the value was lower then 600 Euros per m² or higher then 4,050 Euros m²).  It was lowered by 5% up to 20% for areas where the value was from  650  m² up to 4,000 m², with the maximum drop of 20% in the middle prices, that is where the value was around   1700  m².