Clarifications regarding the tax treatment of short-term real estate leases, starting from 1.1.2024 onwards, are provided by the Independent Public Revenue Authority in order to facilitate taxpayers in the proper fulfillment of their obligations.

The draft law of the Ministry of Finance “Measures to limit tax evasion”, which contains important tax regulations. There you will also see POMIDA’s comments so far on articles 14, 20, 28 and 29 of the draft law. 

Regarding the s.n. this, the Press Office of the Ministry of National Economy and Finance issued the following announcement:

With his circular, the Governor of AADE Giorgos Pitsilis clarifies when, in accordance with the applicable legislation, the sale of real estate by individuals can be considered by the tax authority as a hidden activity, the result of which must be taxed as business profit. Particularly interesting is the provision of par. 4 according to which the scope of the provision in question includes not only the systematic performance of similar transactions but even the individual transaction of sale by a natural person, as long as the purpose is profit, unless this concerns an asset that has been acquired through inheritance or as a gift from relatives up to the second degree or has been held for a period of time longer than five (5) years. 

A new bill was submitted to Parliament by the Ministry of Finance with a number of favorable tax arrangements for real estate transfers, ENFIA certificates, fines for late declarations, inheritances and donations, debt settlements, etc.

Especially with the proposed regulations of bill introduces 12 substantive and procedural amendments to real estate taxation that facilitate the relevant procedures for their transfer, the responsibility of the Ministry of Finance and the AADE /strong>concerning the owners and transactions of real estate which are as follows: 

With a new decision of the AADE (A.1112/2022) signed by its Governor Mr. Giorgos Pitsili and published in the Official Gazette, elements of the decision are amended POL.1162/2018 entitled “Submission of Real Estate Lease Information Declaration using an electronic method of communication via the Internet”, whichresolves a series of important problems of real estate lessorsarising from the operation of the Declaration application of Property Leasing Information of AADE, some of which he had marked with letter of POMIDA.

The changes are as follows: 

On May 27, the Ministry of Finance proceeded with the payment of a total amount of 9,648,595.04 euros to 6,001 property owners (Unit A.F.M.) , resolving backlogs for reduced rents for the period November 2020 – July 2021. In particular, they were credited to the bank accounts:

The charges of the new ENFIA 2022 have been posted in the “Personalized Information” of taxpayers.

The process of posting the bills will take hours as there are more than 7 million bills. However, if the owners want to know immediately what is the amount that has been confirmed to them, but also the amount of installments they are required to pay, they can see it in the “Certified Debts” application, as it is already written there and the total amount with which is borne by each owner as well as the amount of each installment.

From this year the ENFIA payment will be made in 10 installments, the first of which will must be paid at the end of the current month of May and the last at the end of February 2023, according to an amendment tabled in Parliament. The one-time payment of the entire tax does not entail the slightest deduction! Another expression of the thankless nature of this onerous tax, which in the minds of most taxpayers is equivalent to paying monthly…rent for their own house…

Significant reliefs will arise for taxpayers with already low tax obligations, according to the Ministry of Finance bill submitted to Parliament, while unknown charges amount will arise for those owners who own properties in areas where the objective values ​​have increased significantly, or who joined the objective determination system for the first time, or hold even undivided shares or partial rights in rem on properties with a total objective value of more than of €400,000.

The real “Lernaia Hydra” however proves to be the additional tax of natural persons, since “cutting” is supposed to be the “head ” with its alleged abolition, two new forms of tax increase are emerging:

There was an immediate response again from letter (23.9) of POMIDA to the Ministry of Finance and the AADE on the need for automatic offsets of the debts with rent compensations of 2020. The offsets have started of ENFIA (excluding income tax) with 12% of the lost rent for the period March-October 2020! AADE has started running three-speed offsets, which means that it is very possible that thousands of taxpayers will suddenly see the income tax or ENFIA that they have to pay “scissored” or even zero…

During the specialization of the tax measures announced by the Prime Minister Mr. Kyriakos Mitsotakis at the TIF, the Deputy Minister of Finance Mr. Apostolos Vesyropoulos stated the following today: ” 12. From 01/10/2021 the tax-free limit for parental benefits or donations to first-class relatives is increased to the amount of 800,000 euros spouses, persons who have entered into a cohabitation agreement, children, grandchildren and parents.