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Special Property Tax 2011-2012-2013-2014

 
Greece :: Special Property Tax (Duty) 
By George Atsalakis and Niki  Atsalakis, Accountants, Chania

Original: Chania 4/10/2011

Updated June 2014 by Admin.

On 27/9/2011, the government voted a new special property duty referred to in short form as E.E.T.H.D.E, which has been collected through the electricity bills. That is due to be changed to direct collection from July 1, 2014 via the tax authority. There have been minor assessment calculation changes in the four years life of the special property duty(tax) so far.

This special property duty was initially intended for years 2011 and 2012 but went beyond and has extended to be indefinite.

Note: The Greek Government cannot call this duty a “tax” due to legal reasoning that there is already Property Taxes levied on the more expensive properties  i.e. those that have an objective value  (taxed value)  over 200,000 euros while the current law waives such tax for properties under that figure –  Webmaster, BritsinCrete

 

Where is this Duty Applied?

The special property duty is applied to any residential or commercial building that is connected with electricity on 17/9/2011.

If the electricity connection of a building has been terminated after the 17/9/2011, the building will keep being subject to the special property duty.

I would like to clarify that this special property duty is not a property tax. According our previous email (17/8/2011) there is allowance of the property tax for a property that has objective value (taxed value)  less than 200,000€.

 

Who is Liable to Pay the Special Property Tax (Duty) ?

For the year 2011:  the owner of the building on 17/9/2011 is liable to pay the special property duty.

For the year 2012:  the owner of the building on 28/4/2012 is liable to pay the special property duty.

In case that there are co-owners, each owner is liable according to his share.
Tenants renting: If the building is used by a tenant, the tenant is liable to pay the special property duty as scheduled and then he deducts   the duty of rent normally paid to the landlord.

 

How the Special Property Duty is Calculated?

The follow 3 information are needed in order to calculate how much to pay.

Square metre of the building multiply by euro per square metre according the zone price multiply by the age multiplier of the building

Size in sq.m.  X euro per square metre X age multiplier = special property duty

  1. Size of the property.

You have to find out the square metre on the electricity bill. On the electricity bill has been written the total lighted area, including, main space of the building, parking, storage, verandas, balconies etc.

  1. According the Location of the property is assigned a zone rate. The zone rate of your building will determine how many euro it will be charged per square metre.

 

Euro per square metre according the zone rate

euro per square metre

Zone price

0,5

Persons that are unemployed, or have more that 3 children under 18 years old, or are disabled persons more than 80%
that have their building in areas that the price zone is
0 - 3.000 €

3

up to - μέχρι 500 €

4

501 -1000 €

5

1.001 -1.500 €

6

1.501 -2.000 €

8

2.001 - 2.500 €

10

2.501 -3.000 €

12

3.001 - 4.000 €

14

4.001 - 5.000 €

16

over 5.001 €

 

  1. Define the multiplier age according the follow table.

Age of the building

Age (in years)

Age multiplier

older than  26 years

1

20 up to 25 years

1.05

15 up to 19

1.10

10 up to 14 years

1.15

5 up to 9 years

1.20

0 up to 4 years

1.25

Despite the age of the building for persons that are unemployed, or have more that 3 children under 18 years old, or are disabled persons more than 80%
that have their building in areas that the price zone is
0 - 3.000 €

1

 

Almost in all villages the price of the zone is 501-1000€ so 4 euro per square metre is used
For the most houses inside Chania, the price of the zone is 1001-1500 so 5 euro per square metre is used. 

Example:
A house 80 sq.m.  that is  8 years old  in Vamos

80X4x1.20=384€

Date of payment
For 2011 the duty will be paid in 2 installments.
The first installment to begin billing in October .The second installment will be included on the electricity bill of December 2011.

For the 2012 the duty will be spread in four installments.
You will pay your electricity bill us you normally would.

Exceptions:

  1. Electricity bill for communal areas of apartments and hotels (only communal areas). Agriculture and industrial buildings
  1. Unemployed persons , disabled persons (disability rate more than 80% that is certified by a public hospital) and large families (at least for children under 18 years old), with a certain income level (less than 30,000€) are eligible for the lowest rate of 0.50€ per square metre, only if the property is :

 

  1. Less than 120-200 sq.m..
  2. Located in non-affluent areas where property zone rates are less than 3,000€.
  3. The objective value of the property is less than 150,000€.
  4. Owner resides on the property, he is permanent tax residence in Greece  and he declares the world wide income in Greek tax office
  5. The unemployed person should be registered with OAED  (Greek unemployed office) at least 12 months before the date that the electricity bill is issued and he has received  at least 6 of the 12 months  subsidies and must have a declared income of 12,000€ or less on their 2010 tax filling
  6. The long term unemployed not collecting OAED subsidies must have a declared income of 12,000€ or less on their 2010 tax filling.

 

 

MAKE A SIMPLE ESTIMATION OF SPECIAL PROPERT DUTY.

If the above are too complicate, you can make the follow calculation in order to estimate roughly your liability:

Here is an example for a house that is located in a village, with the follow electricity bill.
In order an upper limit of how much property duty this house has to pay,  please multiply the square meter by 5€.  So a roughly estimation of the upper level of duty of 2011 is:
78 x 5 = 390€. 
195€ must be paid with the electricity bill of October of 2011 and the remain 195€ must be paid with the bill of December 2011.
Tax Calculations

In case that the special property duty will not be paid there are the follow implications:
a) The electricity company will cut the electricity connection
b) After 4 months the duty is transferred to the tax office for collection.

 

Atsalakis George, Atsalakis Niki, Tzanakaki Str. 6, 1st floor, Office No. 8,
Chania, GR-73134, tel.-fax: +30 28210-28469, mobile: +30 6944768871.
License No. 0028677,    e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. , www.cretanaccountant.gr

 

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