Measures to address the housing problem facing society announced by Prime Minister Kyriakos Mitsotakis from the stage of the 88th International Exhibition of Thessaloniki, These measures include the satisfaction of two proposals – requests of POMIDA, the historically important tax exemption for the new leases of closed houses, etc. which will drastically change the image of the market in long-term property leases, but also the increase (doubling) of the discount of insurance premiums for theo-months, etc. by ENFIA in most of the country’s buildings, which will give another push in the right direction of private building insurance, as an act of providing for the owners of their property.
For these measures, from POMIDA announced the following:
POMIDA welcomes the determination of the government and the Prime Minister Mr. Kyriakou Mitsotakis to stand on the side of society and with a proclamation of historical importance, which was a proposal and success of our organization, to tax the reintegration into the rental main residence market of our country both of the large potential of inactive citizens residences, as well as renovated residences that were attempted to be made available for short-term rental without success.
The POMIDA has had for about a year, officially submits this proposal to the government, formulated in a legislative amendment, pointing out that this measure is the only one that can “unlock” closed properties and offer affordable and quality housing to tenants.
The acceptance of our proposal is proof that the government is really interested in the housing problem, putting the social interest before unfounded fiscal misgivings and adopting a courageous solution that will bring results to the benefit of all stakeholders: owners, tenants and also the State.
The responsibility of the relevant ministers is now to immediately proceed to proper implementation of the measure, without unnecessary “criteria”, exceptions, exclusions and “asterisks” that will in practice cancel the results we all expect, so that every available residence, no matter who it belongs to, can go on the market, taking advantage of this incentive. And of course the responsibility of the owners is to respond positively, hurrying to offer to the market every available property, in good condition and on reasonable terms, so that they too can benefit from this important incentive, but also to meet the needs of society in available and affordable residences.
This regulation in combination with the aid programs for upgrading residences, the new “Spiti my” program, but also the doubling of the discount ENFIA for the insured houses, a request and that of POMIDA, are important measures that will help the real estate market and society in general. Of course, it always remains as a standing request of POMIDA the rationalization of the irrational tax rates of the rent scale, which is a permanent deterrent against owners and tenants.
Finally, in relation to with short-term leases, we await the specificity of the measures announced, always pointing out that this category of leases brought multiple beneficial results for the Greek society and economy and that the taking of measures that would lead to its direct or indirect “strangulation” will reduce the incomes of the owners but also of all those who deal with this activity via satellite, the tourist traffic and the revenues of the State, without helping with housing, as some people maliciously claim or even naively imagine…
The measures that directly or indirectly to property owners are the following:
- Three-year exemption from rental income tax for owners who will rent out on new long-term leases properties that were closed or had offered in short term leases. The Prime Minister explicitly stated that he accepts the relevant request submitted by our organization.
- Increase to 20% of the ENFIA discount (minimum 25% reduction was the request of POMIDA) to owners who insure valuable homes up to 500,000 euros from theonomys. Homes of greater value will retain the 10% VAT discount if they are insured, but if they are not, from April 2025 they will not be compensated by the state in case of damage.
- 400 million program for loans of up to 20,000 euros with zero interest and the goal of the energy upgrade of thousands of old houses.
- Program “My House” II, amounting to 2 billion. with resources from the Recovery Fund, to acquire a first home for over 15,000 young people or young couples aged up to 50, with an interest rate half of the commercial one.
- The Climate Resilience Fee increases from April to October , proportionally, for hotels, accommodation and rental properties through platforms. The specific revenue will go back to local communities to better organize their infrastructure against the burden they receive every summer.
- Proposals for time and other restrictions on existing short-term rental properties, as requested by POMIDA, were rejected. However, it will not be allowed to grant a registration number (AMA) to new properties in the 3 central districts of Athens for at least one year. See the map of the 7 Apartments of the Municipality of Athens:
These measures will be specialized by competent ministers within the coming week.
