ECONOMY

Red tape bogs down property transactions

The process for the creation of the state’s Property Buy and Leaseback Entity is in its final stage. The Finance Ministry will start the procedure this week for selecting the investor to run the entity, calling an international tender. The entity will acquire the main residence of vulnerable households unable to meet their obligations to banks or funds, in order to help them avoid losing their home. The platform will open in late May for applications by households, confirming their eligibility for the program. An estimated 5,000 households fulfill the criteria, as the majority of vulnerable debtors have already reached settlements.

Nikos Roussanoglou

August 17, 2022 17.08.2022 • 22:22

Property transactions remain cumbersome despite promises of streamlining that remain largely unfulfilled.

Some agencies, such as the Independent Public Revenue Authority, have made it easier to submit documents online, but, overall, property transactions take time – 26 working days; in comparison, they take 10 days in Portugal and just three in Norway. On top of that, 17 support documents are needed.

Last year, there were significant problems with municipalities not issuing property fee certificates or were so late that other supporting documents were no longer deemed current; transactions were delayed or even canceled because of that.

The government promises to address the need to support document submissions by creating a Digital Property Portfolio, a platform financed with the EU’s Recovery Facility, by the end of 2023.

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