OK. Here the deal between the Troika and the Greek governments of the last three years. Those fine gentlemen in Brussels (EU), in Washington (IMF) and Frankfurt (ECB) will decide how much my home is worth and they will tax it accordingly. Even though they have never neither visited my home, nor came even close to my neighborhood. And they will tax it according to wrong calculations and values just because I have to pay what the Greek governments wasted all over the years.
Let’s say my home (3BR, 130 sqm) had a value 0f 300,000 euro ten years ago. Should I decide to sell it today, in order to come up with my obligations towards the state and Greece’s lenders, I wouldn’t be able to do it for more than 200K-180K euro.
Because amid the deepest economic- and debt-crisis the value of my home has sharply decreased. The real estate market broke down long ago. Hardly somebody buys a home and not even a foreign investor would be interested to throw a euro into my no-name neighborhood in the Greek capital Athens, an average middle-class suburb without big green gardens and blue swimming pools.
The commercial value of my home is down. Respectively also the objective value of my property has sank. Why there is a gap between the C-value and the O-value I am not going to explain here. A fact is a fact.
When it comes to taxation based on the objective value of my property, both Greece’s lenders and the Greek finance ministry calculate the taxes according to values valid ten years ago. Before the crisis.
Correct! It’s the over taxation of everything that walks, crawls, swims and flies, that I’ am talking about.
According to the loan agreement of 2010, if I am not mistaken, the objective values of real estate were supposed to be revised in 2012. They were supposed to revised upwards, a measure that was based on the wrong assumption of the Troika that the commercial values would go up and therefore the objective values had to harmonize with the wrong assumption of the Troika.
The Greek crisis and the Troika’s loan agreements brought upside down not only our Greek lives but also the commercial and objective property values.
noble suburbs Ekali Vouliagmeni: objective values 30-25% higher than commercial values
average middle-, working-class Peristeri, Ilion: objective values 54%-80% lower than commercial values
So what does the Troika thinking to do? It will postponed the already postponed harmonization of objective values – that have to be revised downwards and not upwards – for 2016.
This was stated by EU Commissioner for Economic and Monetary Affairs, Olli Rehn to relevant question posed by Theodoros Skylakakis, MEP group ” Alliance of Liberals and Democrats for Europe”.
Olli Rehn’s answer: “Greek authorities continue to work on the formal procedure to review the assessed value of property in order to better align with market prices . This typical process applies for purposes of property taxation for the financial year 2016 . “