OWNERS EXCLUDED FROM SURPLUS VALUE TAX
There are many scenarios so far on the Surplus Value Tax and how it will be calculated, with the result that property transactions have been “frozen” for several months now. The Ministry of Finances finally seems to have come up with the general plan. On this basis, the surplus value tax will not be charged to property owners who acquired their properties before 1994. This arrangement will be finalized and put into effect when approved by the Troika and included in the relevant draft law.
Moreover, the surplus value tax will be reduced in comparison with the original plan, since the acquirement value will not be the real one, but will be calculated according to present situation by a price index, thereby reducing the surplus value of the property and thus the tax. The tax will remain 15% of the difference between buy and sale price, but those who own at least five years the property will not be taxed for the first 25.000 € of surplus value.
Anyway, a large number of sellers will benefit from this arrangement as they will have to pay significantly less or no surplus value tax during the transfer.