In today's announcement by POMIDA on the new Local Government Code, the main changes concerning real estate and owners are presented, as they are shaped after its passage by Parliament.
The Federation highlights the main points of the new framework, as well as the effects it estimates they will have. Specifically, the announcement states:
The main changes compared to what is currently in force are as follows:
1. The Real Estate Duty (TAP) borne by owners and the Tax on Electrified Spaces borne by building users (tenants), are unified into the new Local Development Duty (TTA), with a tax rate of 0.30-0.70‰. This Duty from 1.1.2027 will be collected through energy bills. If it is paid by the tenant, it will be deducted from the rent payable, unless otherwise agreed in the lease agreement.
2. The Cleaning and Lighting Duty (TKF) for vacant and non-electrified properties is calculated by the municipality's financial service at one tenth (1/10) of what they would owe if they had an electricity supply:
- for covered spaces that do not have an electrical installation and are not in use,
- for properties that have an electricity supply, which is disconnected, and they are vacant.
Inclusion in the reduced rate takes place automatically, from the date of disconnection of the electricity supply, for which the Hellenic Electricity Distribution Network Operator (DEDDIE) or the liable person informs the relevant municipality without delay, whose competent service carries out the transition within one (1) month from the notification.
3. Exempted from the new Local Development Duty is the “right to build upward”, a right now devalued by our urban planning legislation, no longer of substantial value in most cases.
4. Leases of private properties to the Municipalities and Regions of the country will have a duration of up to 12 years, and if the Municipalities or Regions wish their continuation, they will be able to extend them for up to 12 more years by decision of the absolute majority of the Municipal or Regional Council, if the lessor expressly consents to the extension terms proposed by the decision.
5. Collection of municipal fees on properties by “other means”. A last-minute measure during the voting of the Code, but with serious consequences to the detriment of both owners and Municipalities, was the addition of the possibility of future replacement of the decades-long system in force of joint collection of municipal fees on properties through energy bills, with “other means” of collection, which are not specified in the law and may include charging and payment through a special platform of the Municipality, the KEDE or even the AADE. With this measure:
- In owner-occupied and owner-used properties, their owners (who are consistent in their payments) will add one more payment procedure to their monthly obligations, whereas until now this was done automatically with the payment of the energy bill.
- In rented properties, however, the charging of the fees must definitely be made to the tax identification numbers of the actual debtors, who are the users of the buildings, that is, their tenants. If it is chosen that these fees be charged to the tax identification numbers of the owners, who would then have to pay the fees out of their own funds and subsequently claim them judicially from their tenants, this will be yet another serious reason discouraging owners from renting out their properties, with obviously tragic consequences, particularly in the area of the supply of housing for lease.