Tax trouble for homeowners
Properties in several zones where the taxable rates have increased will entail higher dues
The new increased taxable property rates, known formally as the “objective values,” that came into effect in January 2022, are leading to an increase in the taxable value of taxpayers’ assets used for estimating their real incomes (“tekmiria” in Greek).
For some property owners, or even tenants, this will have negative consequences as they will be asked to pay additional taxes. On the other hand, in areas where objective values have declined, tekmiria will also drop.
Therefore in the areas where the zone rates rise above the threshold of 2,800 euros per square meter, the tekmiria of the dwellings taken into account to determine the taxable income are increased by 40%.
In those areas where the objective values increased by more than €5,000 euros/sq.m., the house tekmiria estimates increase by 21.43%.
In areas where the objective zone prices fell below the threshold of €2,800/sq.m., the tekmiria level of houses will be reduced by 28.57%.
For instance, the residents of the 3rd district of the Municipality of Athens are at risk of being caught in this trap, with the zone rates there rising from €2,300 to €3,200/sq.m. (including the areas of Asteroskopeio, Petralona, Metaxourgeio and Thiseio). Likewise, the residents of the 1st district of Thessaloniki (i.e. the historical center of the city), the residents of the Municipality of Piraeus and Palaio Faliro etc.
On Santorini and Mykonos the maximum zone price now exceeds the €5,000 limit and those who cannot cover the tekmiria with their declared incomes will pay additional tax.
For owner-occupied or leased or free-granted secondary residences, the level of the tekmiria is set at 50% of the presumed value of the main residence together with its ancillary space.
If the residence is rented out for certain months of the year, the annual tekmiria amounts for both the primary and secondary residences will be apportioned based on the months of the lease.
