« Will I find a home to stay? » Plan with 5 interventions for cheaper roof (graph)

Burning rents and commercial prices remaining on an upward trajectory make up the housing market in Greece.

The housing problem remains acid, with at least 30% of the average household income going to housing needs.

These are the highest rates in both the EU and the OECD countries.

At the same time, home ownership has touched the historic low of 69.6% nationwide and 64% in Athens, with the younger generation remaining trapped in its children’s room, as seven in ten Greeks aged 18-34 inhabit their parents’ home.

With the aim of increasing the availability of housing, which is estimated to brake the rally at rent prices, the government is processing new proposals with interventions in real estate taxation that touch on both tenants and property owners.

The scenarios on the table are many and nothing will be « locked » before the end of August, when the government will have a clear picture of the fiscal space which will fund the measures included in the TIF basket and will be activated in 2026.

Following the return of a rent each year to 948,000 low and medium income tenants, which the government has already announced and will legislate in the coming days, the « freeze » of objective values ​​by 2027 that has been decided and the « running » programs, Treatment of the housing crisis reportedly provide:

1 « Haircut » tax on rental income.

Property taxation is the main reason behind the housing crisis, according to Kapa Research research findings on the real estate market, which was recently carried out on behalf of POMIDA.

In the survey, almost 50% of the owners find the reduction in rent tax the most effective measure to boost housing supply. In this context, the government, with the aim of revealing « black » rents, is considering interventions on the scale of income from real estate such as:

• Reduction of the 15% rate currently valid for incomes of up to 12,000 euros in the 5% region for income part of up to EUR 5,000 and maintained from 5,001 to 12,000 euros. In such a case of a taxpayer receiving 5,000 euros from rents, he will pay a tax of 250 euros while currently paying 750 euros, that is, she will have a 500 euro relief. Those who declare annual income higher than 5,000 euros will have the same profit. For example, the tax today for an annual income of 12,000 euros is EUR 1,800 while with rates of 5% for up to 5,000 euros and 15% from 5,0001 to 12,000 euros in € 1,300, ie 500 euros lower. For incomes of 15,000 euros the tax drops to EUR 2,350 from 2,850 euros and for income of 20,000 euros the charge is reduced to EUR 4,100 from 4,600 euros.

• Breaking the scale from 12,001 to 35,000 euros with the addition of an intermediate rate between 15% to 35% applied today for this income section. The aim is to make a proportionate distribution of weights and to provide incentives to the lessors with mid -income income for a statement of real revenue.

Today, the annual net taxable income from rents is taxed independently by the first euro on the basis of a scale in which rates apply:

• 15% for the first 12,000 euros of income

• 35% for part of the income from 12,001 to 35,000 euros

• 45% for income part of over 35,000 euros.

2 New housing policy measures.

As part of the redistribution of NSRF resources 2021-2027 in June, the use of Community funds are also sought to address the challenges in the housing.

The Commission will enable Member States to increase their investment in the housing market with 100% Community funding, as well as a 30% budget supply as a down payment, doubling the already scheduled investment for the roof, while increasing funds used for pan-European housing.

Reports indicate that all the available tools are being examined, so that the banking system will be channeled to the market as many repairs as possible to increase the available property stock.

The Commission will enable Member States to increase their investment in the housing market with 100% Community funding, as well as a 30% budget supply as a down payment, doubling the already scheduled investment for the roof, while increasing funds used for pan-European housing.

3Interventions in short -term leases Maintaining the ban on new Airbnb in downtown Athens and after the end of 2025.

4New extension of the zero VAT rate on the newly built real estate, which expires normally at the end of 2025.

5 Maintain taxation of up to € 16,000 for residential renovations for 2025 and 2026 income.