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MINISTRY OF FINANCE: Measures for the taxation of rents

MINISTRY OF FINANCE: Measures for the taxation of rents
MINISTRY OF FINANCE: Measures for the taxation of rents

The property owners themselves want to change the way they are taxed and have made this clear to the financial staff as well.

The Anti-Tax Avoidance Bill – which incorporates provisions that drastically change the tax landscape for the self-employed – has not even been put out to public consultation, but early discussions about what its next moves should be Ministry of Finance have already begun.

According to information from, the leadership of the ministry, after the passing of the two bills that are pending – the bill for servicers and the facilitation for borrowers – will now turn its gaze to the new year. in the taxation of rental income and soon Kostis Hatzidakis will accept the relevant proposal.

A ministry official commented that the way the taxation scale is structured, it favors tax evasion and tax evasion is the big bet of the second four-year period. Therefore, the Ministry of Finance wants to intervene on the scale.

Under the current system, the first €12,000 of income is taxed at a rate of 15%.

From €12,001 to €35,000 the rate jumps to 35% and excess income has a rate of 45%.

A taxpayer with an income of €12,000 will pay a tax of €1,800.

At €15,000 income the tax jumps to €2,850

In this big gap between the first and the second echelon they see in the ministry that tax evasion can….flourish.

The insertion of another intermediate rate would be the obvious solution for most, but the Ministry of Finance declares that it is still too early to say whether this is the appropriate solution.

At the same time, the property owners themselves want a change in the way they are taxed and have made this clear to the financial staff as well.

They raise an issue of moral order as, as they claim, all direct taxes except those of their own taxation have been reduced. They believe that the current system is counterproductive since it pushes them into short-term renting which exacerbates the housing program facing the country.

The desire of the property owners according to information is to reduce the rates by 50%. Let’s go to a system with a rate of 7.5% for the first €12,000, 17.5% for the part from €12,001 to €35,000 and 22.5% for the excess.

They would not say no, of course, to a horizontal rate reduction of 10 points as a model with rates of 5% – 25% – 35% leads to the first bracket in which most taxpayers are concentrated in even more relief.

In the “reserves” there is also the complete abolition of the system of independent taxation of rental incomes and their integration into the general income tax scale, which would favor low incomes or those who have incomes only from rents.

The comparison with the rest of the European countries shows that Greece is well above the average, specifically 12th out of 32 countries on the scale of the Global Property Guide average tax of 22%. And of course to these burdens must be added the ENFIA, which despite its relief, ranks Greece in 2nd place in real estate taxation behind only Iceland with collections at 1.1% of GDP.


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The article is in Greek

Tags: MINISTRY FINANCE Measures taxation rents


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