IOBE: Property taxation harming the economy

The existing property tax framework in Greece hampers the expansion of its real estate sector, a report published this week in Athens has found.

The study by the Foundation for Economic and Industrial Research (IOBE) noted that the introduction of the Single Property Tax (ENFIA), including its supplementary tax concerning owners of properties worth more than 200,000 euros, at the height of the country's economic crisis reduced yields in property sector investments, diminished transactions and discouraged investors from acquiring more properties in Greece.

It said that abolishing one of the taxes would boost the country's output and employment.

The economic impact of property taxation is estimated at an annual 6 to 9 percent of the country's GDP, and a total of 70,000 to 100,000 jobs, the report pointed out. It also entails the loss of tax revenues of...