EXCEMPTED FROM THE SURPLUS VALUE TAX THE OLD BUILDINGS

After strong opposition to the law, the Ministry of Finances has decided to exempt from the Surplus Value taxation the properties that belong to their owners more than 25 – 30 years. This decision comes to solve the problem of calculating the surplus value of these properties, without which it is impossible to calculate the corresponding tax. Reminder for the surplus value tax that it is calculated at 15% on the difference between the purchase price and the selling price.

According to Deputy Minister of Finances, Mr Mavraganis, “in the real estate sector there has been a significant reduction in the transfer tax, which is now 3%, in accordance with the average of the EU. There is imposed a Surplus Value tax, in order to tax only the real residue of the transfer.” Mr. Marvaganis accepted that “in any new form/reform of legislation will rise several practical issues, but listening to the society, the government is willing to correct it.” He continued saying that “the government will deal quickly with some technical details, in order to reduce the various injustices that occur with Surplus Value tax. I think we should be careful in what is taxed, because if because by taxing the transaction by itself there will be several injustices. For example, for someone who has bought a property priced 20.000 € and sell it 10.000 €, taxing the transaction will mean taxing their loss. So there is the necessity to calculate with a fair mode the surplus value, thus we will reform the law”.