Dramatic measures designed to tackle GreeceÃ¢â¬â¢s economic problems have seen property taxes in the country rise by almost 600 per cent in the last three years. If youÃ¢â¬â¢re thinking of buying a property in Greece then you will face increased taxes on your home, and analysts believe that these taxes are having an adverse effect on foreigners buying property in Greece.
Greek government collects 10 times the property taxes they did in 2010
According to recent figures, Greece collected property taxes worth Ã¢âÂ¬2.75 billion (ÃÂ£2.37 billion) in 2012, compared to Ã¢âÂ¬526 million (ÃÂ£455.4 million) three years ago. The state is expected to collect Ã¢âÂ¬3.2 billion (ÃÂ£2.77 billion) in 2013, equivalent to six times the amount generated in 2010. Property Abroad reports that Greece currently has forty different taxes related to property.
Stratos Paradias, the Chairman of POMIDA, the Greek Property Federation, said that many Greeks were looking to reduce the amount of tax they had to pay by listing their homes for sale. However, a lack of domestic and overseas buyers mean there is not a huge demand for property in Greece.
25 per cent of the countryÃ¢â¬â¢s population is currently finding it difficult to meet their mortgage payments, and an additional 48 per cent believe that itÃ¢â¬â¢s just a matter of time until they face the same dilemma. And, a significant proportion of Greek citizens (82.7 per cent) say that owning a property in the country is not worth it anymore and over 50 per cent of respondents say that renting a home in the country is better than owning one.
Property taxes have been one of the ways in which the Greek government have sought to raise additional revenue, However, increased taxes have left thousands of homeowners struggling to meet both their mortgage repayments and their tax liabilities.
I wonder if this will put overseas property buyers off or help drive down demand and Greek property prices.
Author : Nick Marr