Greater Scrutiny on Property Transfer Costs Coming Soon!

Electronics from May and with a click on real estate transfers

Real estate transfers, parental benefits and donations are now online. It will come with a … click and tax to be paid. To “find” black money and tax evasion wants the AAD.

Technology dominates everyday life, and anyone who does not know the elementals feels illiterate. So it would not be possible for a long time to maintain the real estate transfer regime with so much bureaucracy and so many papers.

  1. According to the design of the Independent Public Revenue Authority, from May and possibly before the European elections, the new system of electronic property transfers will be launched.
  2. According to the relevant information, the first contacts of the Independent Authority of Public Revenue authorities with the notaries took place and showed that the project could be launched by the pilot in May, aiming at its full implementation in October.

The process of a property transfer will begin and end in the notary’s office. This means that the taxpayer will not have to visit the tax office after the statements will be drafted and submitted electronically by the notary.

After the electronic audit of the system, the tax will be certified and the Compensation Identity Card will be issued for electronic payment of the tax.

  • The first dimension of change has to do with facilitating taxpayers and simplifying procedures. The second relates to the facilitation of intersections. With the click of a button, AAD’s services provide a full picture of real estate transfers that can easily reveal cases of tax evasion and, possibly, black money. A recent survey by the Association of Greek Real Estate Experts (PSO) showed that most real estate purchases are made in cash, and eight out of every ten properties (84.7%) sold in the second half of 2018 were bought in full cash.

The first meetings of AAD executives with notaries were reportedly in a very good climate with notaries believing that the reform is going in the right direction. The aim is that after the pilot implementation of the measure at the end of May, in October next year, global real estate transfers will involve, in addition to buying and selling, any transfer transactions including inheritances, parental benefits and donations.

  • Already the declaration of parental benefits and financial donations is expected to be submitted electronically by both parties. It is not enough for the spouse, for example, to say that he has received a donation of 5,000 euros from his wife and vice versa, the husband will have to confirm that he has made this donation. The tax, at a rate of 10% in this case, is automatically confirmed by the submission of the statement.
  • The existing amendments to the Code of Taxation of Hedges, Donations, Parental Benefits concern the introduction of the electronic submission of tax returns for financial donations / parental benefits through the Taxis system, as well as the introduction of the obligation to submit any donation- by both parties, irrespective of whether a notarial document is being drawn up for that recommendation.

By submitting the statements, the “” ends, the liquidation is settled and according to the provisions of the Code of Taxation for Grants, Parental Benefits and Heritages the taxes are paid in 12 monthly installments. In contrast to real estate transactions, the transfer tax is paid out on a lump sum and payment is a prerequisite for the completion of the transfer.

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