And this limit concerns both immovable property and movable property.
Indicatively, it concerns real estate, sums of money, shares.
I remind you that for monetary amounts, until today, there was independent taxation from the first euro, at a rate of 10%.
As everyone knows, until today parental benefits were tax-free up to the amount of 150,000
From 150,000 and up to the amount of 300,000 euros, a 1% tax was provided.
From 300,000 to 600,000 euros, a 5% tax was provided and for amounts over 600,000 euros the tax was 10% .
And today the tax-free amount increases to 800,000 euros.
I will give three examples so that everyone can understand, the benefit for the citizen, the benefit for the Greek family:
First example
Until today parental provision of property, from parent to child, 300,000 euros was charged with a tax of 1,500 euros.
From now on, the citizen will not pay a single euro of tax.
Second example
Gift of a property from a grandfather to a grandson worth 600,000 euros, today it has a tax of 16,500 euros and from 01/10/2021 it will have zero tax.
Third example
Monetary parental benefit or donation 200,000 euros today has a tax of 20,000 euros and from 01/10/2021 it will has zero tax.
This is a brave and substantial measure of tax relief.
To all this we should add the work of the working group that is underway, to shape the new ENFIA by adjusting the rates to the new objective values.
The comprehensive plan for the real estate tax will be presented during the Budget debate in Parliament.”.
From today’s announcements by the staff of the Ministry of Finance regarding the new tax policy regarding parental benefits, the radical nature of this important measure which announced the Prime Minister and the message he is sending to Greek society and family.
In relation to this measure, in communication between POMIDA and Deputy Minister of Finance Mr. Apostolos Vesyropoulos, the following were clarified in particular:
- The significant relief of parental allowance aims to significantly exceed compared to the tax treatment of inheritance.
- The measure aims to facilitate the passing of all kinds of assets of the Greek family to the new generation, during the lifetime of the of parents but also of their grandparents, so that the young people can take on the management, as well as their responsibilities, in a timely manner.
- The tax-free limit of €800,000 replaces the previous limit of €150,000, per parent as well as per child, with the result that property with a total value of up to €1,600,000 from both parents is transferred without any tax to each child.
- Amounts of property that exceed the limit of €800,000 will be taxed with the applicable maximum rate of 10%.
- The effect of the new measure begins on October 1, 2021, so that the taxpayers concerned can benefit from the applicable and generally lower zone values of the property value system.
However, the intention of many of the citizens concerned to proceed with notarial acts of parental benefits within the deadline of 31.12.2021 in order to take advantage of this double incentive given by the Ministry of Finance for this short time, they run into two important obstacles, which are pointed out to us by strong protests from all over the country:
In that from 1.10.2021 the mandatory validity of the so-called “electronic building identity” begins, which entails excessive bureaucracy, time-consuming to find all the required documents and information, but also unspecified cost of drafting it, and
In that the platform for declaring undeclared real estate areas in the country’s Municipalities has not been opened, which for those citizens now find the need to declare themselves, according to the currently valid, request retroactive fees of up to 13 years, with surcharges reaching up to 200%!
measure announced by the Prime Minister Mr. Kyriakos Mitsotakis the day before yesterday at the TIF, allowing until 31.12.2021 the drawing up of contracts with a simple “engineer’s certificate” and immediately opening the platform of undeclared real estate areas!
