PROPERTY TAXATION

Cutting red tape on property

Tax administration tries to reduce bureaucracy in transactions, but faces some resistance

Cutting red tape on property

The tax administration is moving toward cutting red tape in property transfers, taking concrete steps in that direction, but some parts of the broader state are trying to hamper the drive against bureaucracy.

The Independent Authority for Public Revenue (AADE) is proceeding with the abolition of the certificate confirming that a taxpayer does not have any inheritance tax debts, in an effort to facilitate real estate transfers. At the same time, it is examining other certificates and attestations that could be abolished, so that the process of transferring real estate is done faster and with less inconvenience for citizens.

As mentioned by sources at the authority, other certificates which currently have no reason to exist will soon be abolished.

However, some parts of the state are “resisting” the red tape reduction, as several municipalities take up to two months to issue a certificate of no dues from the municipal tax on property (TAP), a process that would normally be completed within a few minutes or up to three days as required by law.

Although the issue is not related to the tax office, the TAP certificate and the impossibility of issuing it is the main reason why contract agreements break down. In fact, as reported by those involved in the real estate market, there are factions within the headquarters of municipalities and tax offices that are resisting the changes and the reduction of supporting documents. The “power of the counter” is strong, they say.

Despite the fact that the formal statement of no TAP debts has been introduced into law, most municipalities of the country do not accept it, with the exception of the City of Athens and the Municipality of Zografou (possibly some others as well).

In fact, in the City of Athens and the Municipality of Zografou, electronic platforms have been created for the relevant certificates. Sources from the state mechanism indicate that all municipalities will soon be required to create a platform for TAP certification.

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