The government is looking to extend the suspension of the 24% value-added tax on newly built properties and the 15% capital gains tax on property transfers, with the relevant legislative provision expected to be submitted in the fall.
According to sources, the extension is being considered for one or two years, maintaining the tax regime currently in force in the real estate market. The decisions will be finalized during discussions for the tax intervention package that will be announced at the Thessaloniki International Fair in September, where the prime minister customarily outlines new government economic policy.
These are two tax measures that continue to form part of Greek tax legislation and, therefore, under normal circumstances, should be applied, as laws are enacted to produce legal effects and not to remain suspended for long periods of time.
Value-added tax on newly built properties was introduced by a 2005 law and enacted in January 2006, in the context of measures to harmonize Greek legislation with the European Union’s VAT regime and to rationalize taxation of newly built properties. However, its implementation was suspended several years later as an exceptional measure aimed at boosting construction activity and the housing market.
