The full text of the letter is as follows:
To the Prime Minister Mr. Kyriakos Mitsotakis
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To the Minister of Development Mr. Adonis Georgiadis
Here Athens, 6.12.2022
TOPIC: Unilateral and socially unjust extension of the 3% ceiling on commercial leases!
Honorable Mr. President, Mr. Minister
As you know, with article 121 of Law 4926/2022, a maximum increase rate (3%) of the rents in real estate leases falling under the category of commercial leases for the year 2022. It should be noted that this binding measure was imposed exclusively at the expense of small and medium-sized owners of shops and offices, while it was expressly excluded from it all the large business and investment property.
Without any previous discussion and on the side of the owners, we were surprised to hear today the announcement that the against them, this unilateral and socially unjust regulation will be extended for the next year 2023!
This measure, without any counterweight in favor of its victims, on a personal basis brings in desperation a significant number of landlords who from the amounts of rent they collect are obliged to cover the heavy income tax, of which you have not changed in the slightest the “confiscating” literally scale of rents, which reaches up to 45% tax-free, the ENFIA which you dramatically increased for those with assets over €400,000, the loan obligations of those struggling to keep up with them, even though interest rates rose significantly in recently and the expensive upcoming mandatory energy upgrade of their buildings, on penalty of deflating their value. On the contrary, on the side of the professionals favored by this regulation, a lot of rich measures have been taken and are being taken to strengthen them.
Our view, based on our experience over the last 40+ years, is that this marketregulates itself much more quickly and efficiently through consultation of the interested parties,rather than any kind of government interventions, which, although temporary, inevitably carry within them the seed of the long-term and destructive tenement practices of the past, which literally destroyed its building potential of our country…
That is why we believe, Mr. President, Mr. Minister, that instead of prolonging this unjust and dangerous measure, the best immediate and effective intervention that you can and should do in favor of tenants, is finally the drastic rationalization of the tax burden on small and medium owners of rented commercial properties and not the continuous taking of unilateral measures against them! p>
At your disposal for any clarification and cooperation
The President The Secretary General
Stratos I. Paradias Tasos G. Vappas
Lawyer A.P. – President of UIPI Lawyer A.P. – y.D.N.
