The acceptance of POMIDA’s request was announced a year before the last elections by the current Prime Minister Mr. Kyriakos Mitsotakis, it had been legislated adventurously since the end of 2019 with Law 4646/2019 with a limitation of the discount only to the works and without the cost of supplying the materials, which remains the main request. Finally, after the recent steps of POMIDA, the co-competent Ministries of Finance and Environment and Energy, issued the foreseen Joint Ministerial Decision that regulates the details of its implementation regarding the implementation of the tax incentive established by law 4646/2019 and concerning a discount from the personal income tax, of the costs for receiving services related to the energy, functional and aesthetic upgrading of buildings and carried out from 1.1.2020 to 31.12.2022.
“>The discount will be distributed equally over a period of four years, and will amount to 40% of the amount of eligible expenses for receiving the above services, with a maximum total expenditure limit for the years 2020, 2021 and 2022 of 16,000 euros. The maximum amount of discount is, therefore, a total of 6,400 euros.
For the calculation of the discount, only the expenses for the works are taken into account, and not the expenses for the supplies of materials. Necessary conditions for the discount to apply are the proof of expenses with legal documents and their payment by electronic means of payment (debit, credit or prepaid cards, electronic banking services) or through a payment service provider. Eligible expenses must not have been deducted as an expense from gross business income. In addition, the measure covers buildings that have not already been included or will not be included in a building upgrade program or other programs or grant actions.
According to the KYA, which signed by the Minister of Finance Mr. Christos Staikouras, the Minister of Environment and Energy Mr. Kostas Skrekas, the Deputy Minister of Finance Mr. Apostolos Vesyropoulos and Governor of the Independent Public Revenue Authority (AADE) Mr. Giorgos Pitsili:
* Beneficiaries of the deduction from income tax are natural persons who have the right of full ownership or usufruct in the building in which the eligible costs of energy, functional and aesthetic upgrading are carried out. Beneficiaries are also natural persons who have the right to small ownership of the property, provided that they use it either as a main or secondary residence, or as a headquarters or branch for the exercise of their business activity.
In the above cases, the beneficiary of the reduction is only the person in whose name the relevant document is issued.
If the expenses concern common areas of the building, the manager of the apartment building/property complex pays the expenses electronically and these are taken into account for the beneficiaries according to their co-ownership, based on a relevant certificate issued by the manager.
* Eligible energy costs concern the receipt of services for the following:
– Installation of thermal insulation
– Replacement of frames, glazing and external protective sheets
– Installation or upgrade of a heating system /cooling, as well as the necessary infrastructure and elements, so that the building becomes fully functional as well as electric accumulator systems (batteries) when combined with photovoltaic systems
– Installation of a hot water production system using Renewable Energy Sources (RES)
– Installation of a mechanical ventilation system with heat recovery
– Lighting upgrade of the shared areas of the apartment building.
* The eligible functional-aesthetic costs concern the receipt of services for the following:
– Installation/replacement of plumbing
– Installation/replacement of electrical installation
– Roof maintenance/repair
– Repair of masonry/painting inside and outside buildings
– Installation of fixed or mobile shading systems
– Lift upgrade or installation
– Installation of domestic recharging points for electric vehicles
– Change or repair of floors.
The statements of the competent ministers
“The deduction from the personal income tax for energy, functional and aesthetic upgrading of buildings is a measure with multiple benefits for the environment and the economy. It provides households and professionals with a substantial incentive to contribute to the improvement of the country’s building infrastructure and their energy efficiency, while simultaneously improving their quality of life and increasing the value of their real estate. Also, the measure strengthens tax compliance and supports the construction and technical industries. With its implementation, the Government confirms that it is working steadily and consistently for the implementation of a balanced economic policy, with a particular emphasis on green growth”, said Finance Minister Christos Staikouras and Deputy Finance Minister Apostolos Vesyropoulos.
“The energy upgrade of the country’s building stock is one of the main axes for the transition to a sustainable production model with a low environmental footprint. Energy saving investments will substantially improve the standard of living and everyday life of citizens, by reducing energy costs and protecting the environment. In addition, they will contribute decisively to the development of the economy, especially the construction sector, by creating thousands of new jobs”, said the Minister of Environment and Energy Kostas Skrekas.
