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Greece’s Real Estate Nightmare: Landlords to pay tax hikes retrospective even for “uncollected rent”r

An everything sweeping omnibus bill has been submitted to the Greek Parliament. Twenty four articles that regulate taxes, and taxes and …taxes. And a Greek first: the retrospective hike of taxes even for non-existing income! Value Added Tax, Property Tax, road tax, fines for tax evasion, imprisonment, whatever tax. It’s all there and expects to be voted by end of the week.

The Omnibus Bill has the compact title “Measures for the implementation of fiscal targets agreement and structural reforms” and incorporates the provisions of the first set of prerequisites that Greece has to implement in order to receive the 2-billion-euro bailout tranche.

In the chapters “fiscal targets” the government enlists taxes till the very end of the empty pockets.

Tax hikes: Retroactive as of 1.1.2015 for income from renting a real estate.

For annual income up to €12,000 euro the tax rate goes from 11% to 15%. For any other annual amount above the 12K, the tax rate will rise form 33% to 35%

These new tax rates will be implemented also in the cases that tenants do not pay the rent!!!

In other words: landlords will pay tax even if they did not collect the rent money because the tenants were not able to pay due to the most obvious reason nowadays:  unemployment.

The retroactive imposition of taxes concerning properties will affect also the  the Unified Property Tax (ENFIA).

If the ENFIA was 5 or 10 euro -for whatever reasons- the state did not collect it. Now this will change and the state will collect ENFIA tax even if it is €1,10 (one euro and 10 cents.). If the property owner will not meet his obligation to the tax authorities, the debt will become overdue and will be charged with interest on the delayed payment.

According to the omnibus provisions,ENFIA will be paid also by owners of properties older than 100 years.

You know, these often half-collapsed houses in villages and areas in the middle of Greece’s nowhere that are often inherited from generation to generation and out of any use. Some of these properties have been categorized as “protected monuments” and the owner cannot even hit a nail on the wall without permission by several authorities. So, owners let them collapse because the utilization of such property is too costly and too time consuming.

ENFIA will be paid also for the plot or field surrounding these collapsed century old properties.

Because the legislator, the government that has 1,000,000 + 1 obligations to meet towards the lenders, thinks that the owner of such a property is obviously rich in ruins and land.

PS No worries. The Greek state doesn’t want you dead. Together with the country’s creditors, the Greek state wants you alive and breathing so that it can strip you of everything you have.

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15 comments

  1. 1/is retroactive law leagl in Greece ?
    2/if indeed some people have a property they cannot maintain or pay taxes on, but which they keep in the hope that they might be able to sell some day and have a profit, , they can give it to the state or to the municipality, can’t they ?.
    it would in turn enable these houses to be sold to europeans wanting to invest in a summer or retirement home- which would indeed be profitable for the economy as it would generate money and work

    • give your property to the government in order to avoid paying tax to that government? And there was me thinking the government are the crazy ones…

      • Giaourti Giaourtaki

        It gets even smarter: The reason they lie about that Greece has no land register – as if nobody would know where his trees are – is to get rid of their owners, …no register, ahh… all belongs to the state!

      • A Troika troll, dear, what else?

        Here’s the big clue:

        “it would….enable these houses to be sold to europeans wanting to invest in a summer or retirement home- which would indeed be profitable for the economy as it would generate money and work”

        WHICH Europeans? The scavengers making fortunes out of looting. Obviously.

        • …the rest of the Europeans (the ones not on the Troika gravy train) are either eating at soup kitchens or struggling to keep above this line.

        • not the Europeans, the distress hedge funds.

        • Giaourti Giaourtaki

          Wait, in a few years Greece will be world-champ in Ice-hockey because the Troika ordered to build ice rinks for all the people of the retirement homes that suffer from the Greek heat.

    • Giaourti Giaourtaki

      The Turks have good luck to not be in the EU as all this is only motivated by “Gastarbeiter”-hating Jerries who are still jealous that these folks were working 16 hours a day to build up homes, so in Brussels they decided all their civil servants have to get a house close to the sea and although the real estate market already lost 2 trillion euro the houses are still too expensive. All they really want is a cheap house in Greece with the former owner to be their toilet-paper.

    • Dear Jean,

      you wrote <>

      let us assume that you indeed to be taken seriously.

      where would these unemployed people live?

      will you take them home?

      do you know that most of these people you want to evict are over the age of 70 and have paid tax ALL their lives.

      do you know that it is not the Hellenic people that created this mess, but rather the greedy politicians that were in cohorts with their friends the greedy bankers.

  2. “it would in turn enable these houses to be sold to europeans wanting to invest in a summer or retirement home- which would indeed be profitable for the economy as it would generate money and work…”

    Very clever idea. And please… don’t forget the airports, the shops, the land … even the donkeys and the chicken…..Everything you can buy for….peanuts.

    In a good debtcolony nobody has to posess ANY property.
    Nobody needs to eat and drink.
    Nobody needs health treatments.

    In a good debtcolony everybody has to sell off everything and to serve…(German) banks or lay down die.

  3. Our parents sent their hard earned cash to Greece to build properties – I guess our generation won’t make the same mistake.

    • I am sorry to say that it is coming your way too. Greece is just the test lab for the developed countries. They are working out the how-to here and by the time it arrives at your end it will be no-muss no-fuss overnight homelessness.