Of all the government interventions to deal with the coronavirus, the one that most troubled the parties involved and the Administration, both in substance and in its procedural handling, is the forced reduction of leases of certain categories of real estate leases and then, following the continuous steps of POMIDA to the government staff, the establishment of partial and tax-free compensation of the lessors.
Detailed analysis of how natural property owners will be taxed on their reduced income in 2020 and 2021 (What they lose and what they gain) is published by the Scientific team of the tax hub TAXHEAVEN, quoting full tables with examples, and taking into account reductions per month, the applicable tax scale of independent taxation of rents and the reduction of the solidarity levy for incomes of 2020.
Extending the lockdown until 11.1, in order to open schools, has other serious side effects in the rental sector:
Extension of the deadline for submission of information statements, defined in par. 8 of article 11 of the decision under data POL.1162/2018 (B’ 3579) was signed by the Governor of A.A.D.E. Mr. Giorgos Pitsilis, responding positively to the recent POMIDA memorandum. The text of the decision is as follows:
The Press Office of the Ministry of Environment and Energy announced that the platform for the “Electronic Building Identity”. For one month, until January 31, 2021, the new system will operate on an optional basis, alongside the current procedure. The adjustment period ensures a smooth transition for engineers and avoids downtime. From 1.2.2021 the registration of the Electronic Building Identity and the Identity of Independent Divided Property will be mandatory and will be done exclusively electronically and free of charge.
The Ministry of the Interior issued a detailed circular with data DEPEA/111748/705/19.11.2020 and subject “Clarifications for the implementation of Law 4122/2013 on the Energy Performance of Buildings”, with which analyzes the new rules in relation to the Energy Performance of Buildings, in terms of minimum energy requirements performance, the Energy Performance Certificate (PEA), the Energy Performance Study (EES), the notification of tenants – buyers, as well as the obligations of brokers, advertisers, the press and property owners for each advertising listing, which will be effective from 1.1.2021. The provisions of this new decision are as follows:
Five provisions relating to property owners are contained in the Ministry of Health’s sweeping bill which regulates urgent matters of various categories. Specifically:
The state now also takes over the rents, for the months of January and February, of all businesses that are closed at Christmas by state order. However, it almost completely guarantees (by at least 92%) the fixed income of the lessors, in fact at a time when the market has literally died and the payment of rents seems as precarious and uncertain as all the other fixed obligations that “run” or have temporarily suspended.
With article 5 par. 6 of s.n. of the Ministry of the Interior for the integration of the EU Directive 2018/2002 on the Energy Performance of Buildings, which has been posted for consultation on the website of the Ministry of the Interior until tomorrow, from 1.1.2021, the State will not only be unable to find buildings to rent to house its services, but will be forced to gradually abandon the already rented ones, according the end of their leases! This is what POMIDA points out in today’s urgent letter to the political leadership of the Ministries of Energy and Finance.
Two more requests of POMIDA were accepted by the Governor of AADE, Mr. Giorgos Pitsilis. The deadlines for declarations of real estate lessors have been extended until 31.1.2021 – for the submission of the Real Estate Lease Information Statements, initial or amending, for leases that were in force until June 12, 2020 – for the submission of a declaration of termination of the lease, in case which has been resolved until June 12, 2020. Also, the deadline for submitting a “Covid declaration” or the “Property Lease Information Statement”, for the months of March to August 2020, has been extended until 31.12.2020
The Thessaloniki Property Owners Association actively represents property owners, highlighting their issues and proposing solutions for their resolution, while also providing information and support to its members.
