Real estate transfers – Excluding VAT until 2024
The Ministry of Finance is preparing to give a 15-day extension for real estate transfers with the current objective values, which at the same time plans to keep 24% VAT on the purchase and sale of newly built real estate on "ice" until 2024.
The changes in the rules of VAT rates decided yesterday by Ecofin enable Greece to extend the 24% VAT suspension on transfers of newly built real estate for another two years and specifically until the end of 2024. From 1 January 2025, depending on the fiscal conditions, Greece will be able to choose whether to apply to the transfers of new buildings a reduced rate of 13% or even zero as is the case in other EU countries. (eg Luxembourg).
The measure of VAT suspension on newly built properties until the end of 2024 is expected to support the real estate market, which has been on the rise in recent months and to attract more investment from abroad.
24% VAT was imposed on the purchase and sale of real estate in 2006 and concerned properties with a building permit from 1 January 2006 onwards, with the exception of the purchase of a first home. In the years of the Memoranda The government in 2019 decided to suspend VAT from 1 January 2020 until 31 December 2022, which includes both cases of new licenses and old licenses issued since 1 January 2006.
It is noted that the current legislative regime provides that "at the request of the taxable person, of building manufacturer for sale, the VAT imposition on real estate is suspended until 31.12.2022. and a real estate transfer tax is imposed. The suspension concerns all the above unoccupied properties of the person. Τhe person should also submit a statement with the unoccupied properties and the amount of tax that corresponds...