The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
You pay taxes on income earned by real estate (such as rent) where the above limit does not apply. This income is added to your total income (after deducting 10% for amortization) and has an additional charge of 3%. For example, if you gain a rent of 10,000 euros per year, 9,000 of them are added to your total taxable income and are taxed with your marginal rate (which might be from 0% up to 40%). Then you pay another 270 euros (3%) irrespectively of your marginal tax rate. So for a rent of 10,000 euros you might pay a tax of 3,870 euros (9,000X40% plus 3%).
You also pay two kinds of local government taxes. That depends on the municipality you leave but you should expect around 300-400 euros per year for a flat that can accommodate a middle-class pair and one or two children. Usually the one who lives in the flat pays this tax (be it home-owner or renter).
Then you pay a transactions tax when you buy real estate, which is quite a lot at 13% of the estimated value of the property.
The problem with real estate in Greece is not that it is not taxed, because there are quite a lot of taxes. It is that it is used to launder money by tax evaders. A provision of the freshly announced measured re-inforce that because for the next two years you won't asked where you did find the money to buy new housing property.
To conclude, you pay 13% of the estimated value of your property when you buy it, then you pay 1/1000-1/100 on its value per year afterwards, and of course you pay income taxes on rent earned (up to 40% but for middle incomes it is between 26% and 36%) plus local government taxes.
I hope that explains why real estate worth (estimated worth for tax purposes, to be precise, which might differ from commercial value) under 400,000 euros was not exempt from "large real estate tax".
"Eurozone leaders have turned a €50bn Greek solvency problem into a €1,000bn existential crisis for the European Union."
by Bernard - Jun 26 37 comments
by Migeru - Jun 26 61 comments
by Frank Schnittger - Jun 27 21 comments
by rifek - Jun 27 30 comments
by Frank Schnittger - Jun 25 92 comments
by Frank Schnittger - Jun 24 72 comments
by Frank Schnittger - Jun 23 40 comments
by tyronen - Jun 22 38 comments
by rifek - Jun 2730 comments
by Frank Schnittger - Jun 2721 comments
by Bernard - Jun 2637 comments
by Migeru - Jun 2661 comments
by Frank Schnittger - Jun 2592 comments
by Frank Schnittger - Jun 2472 comments
by Frank Schnittger - Jun 2340 comments
by tyronen - Jun 2238 comments
by John Redmond - Jun 1726 comments
by Frank Schnittger - Jun 1734 comments
by gmoke - Jun 155 comments
by Frank Schnittger - Jun 1362 comments
by DoDo - Jun 1231 comments
by Democrats Ramshield - Jun 104 comments
by generic - Jun 81 comment
by fjallstrom - Jun 81 comment
by DoDo - Jun 647 comments
by ARGeezer - Jun 617 comments
by DoDo - Jun 568 comments
by ARGeezer - Jun 270 comments