Silver lining for Greek estate market?
By Vassiliki Tsigarida, ASnetwork
Tlthough in April 2013 the leaders of the Greek coalition government approached the troika representatives with the proposition of replacing the multiple taxation on property with a single, gradual rate, the outcome of the relevant negotiations was not successful.
The Law 4152/ 9.5.2013 was voted, imposing a new extra-ordinary special duty on the majority of properties connected with the electricity network at any time within the period from 1 May 2013 until 31 December 2013. The above Law sets also that the non-collected Estate Property Tax for the years 2011 and 2012 will be payable in seven installments, while the one corresponding to the year 2013 will be payable in four installments.
Moreover, it was recently announced by the Greek state that major highway construction projects, which were frozen for almost two years due to the liquidity squeeze, are expected to be revived following down payments to consortiums.
Apart from the obvious public benefit, this development is also expected to boost the local economy by creating several thousands new jobs and by strengthening the dormant business sector of technical companies. It is also worth mentioning that, according to a recent decision of the Conseil d' Etat (in a plenary session), the existing licensing framework for shopping centres contravenes constitutionally guaranteed economic freedom; thus the law that currently provides ample discretion to the administration to not issue a license is expected to be revised.
It is beyond doubt that the developments presented above, i.e. the recommencement of highway works and the decision of the Conseil d' Etat, may be regarded as growth-oriented initiatives - providing a small, yet noticeable, margin of optimism for the Greek estate market, nevertheless the big challenge of the imposition of a unified tax rate on estate property remains still unresolved.
Vassiliki Tsigarida, Manager
ASnetwork, Athens, Greece
T: +30 211 4804432
Vacò Tsigarida is a lawyer (manager) with ASnetwork (and more specifically Account-ing Solutions S.A.) since 2011. Previously, she worked for several years as a legal consultant for PricewaterhouseCoopers S.A. and as a freelance lawyer. She is a graduate of Athens Law School and Ruprecht-Karls Universitaet Heidelberg, holding a Master's degree (LLM) in capital market law. She was admitted to the Piraeus Bar Association in 2003 and ever since she practices law mainly in the following areas: corporate, civil, labour, social security and immigration.
ASnetwork ASnetwork (Accounting Solutions S.A. and Audit Services S.A.) provides a full range of accounting, payroll-administration, tax and legal consulting services. We employ more than 90 highly-qualified tax consultants, accountants and lawyers, who add value to our clients' businesses through a proactive approach to the issues identified. In the area of real estate property ASnetwork offers specialized tax services and also undertakes due diligence projects with civil law and environmental aspects.