A number of interventions with additions, corrections and modifications in the context of calculating the taxable value of real estate within and outside the objective system (objective values) brings a new decision of the Ministry of Finance.
With the decision signed by Kostis Hatzidakis and Christos Dimas, the landscape is clarified for the time of calculation of the age of the properties, the facades, the underground and semi-underground spaces, the plot utilization factors.
The changes
According to the decision:
1. Facade: As facades of a property are considered its sides, which have an opening (window, door, or showcase) to a street, gallery or the uncovered area of the plot. It is clarified that especially with regard to basements, whose roof is below or up to the surface of the ground, the existence of any skylight in them is not considered an opening. In the case of a plot of land, its sides bordering common areas are considered as facades.
2. Basement: It is considered the floor or part of a floor that is characterized as a basement in the corresponding permit of the Urban Planning Service (approved plans) or in the deed of establishment of horizontal property and in general in every deed of ownership. In the event that there is none of the above elements, the characterization of a space as a basement will be certified by the competent Urban Planning Service or by a certificate from a competent engineer. Evidence is required in all cases of basements except where the basement has access exclusively from the main staircase or from an internal ground floor space or is a car park.
3. Semi-underground spaces: They are considered ground floor, unless it is proven, after presenting a certificate from the competent Urban Planning Service or a competent engineer, that they are underground.
4. Age of property: It starts to be calculated after the completion of two years from the date of issuance of the building permit or its last revision (e.g. if it was issued on 30.9.1978 the oldness starts to be calculated from 30.9.1980) and is expressed in whole number of years, with the admission that a period of time shorter than a semester is not taken into account, while a longer period is counted as a year.
5. Property without building permit. If there is no building permit, the age is calculated from the date of construction, which is proven by any public document, such as a previous title deed, legalization of arbitrariness, start of electrification.
6. Arbitrarily. The seniority is also proven by the certificate of completion of the process of subjecting the property to the provisions on the regulation of unauthorized persons in force at the time of the issuance of the certificate, as issued by the relevant information system of the Ministry of Environment and Energy, accompanied by the corresponding registration sheet. For arbitrary constructions in a traditional settlement, as long as 30% of the special fine has been paid and a building identity certificate has been issued, the age of the property is that stated on the registration sheet of the declaration of inclusion.
7. Semi-outdoor spaces – attics. Especially for the cases of arrangement of semi-outdoor spaces and attics according to Law 3843/2010, for proof of antiquity, the form bearing the relevant stamps from the competent urban planning office, which is not issued by any TEE platform, is accepted.
8. Property renovation. Permits to change only the use of the building or renovation permits are not taken into account for the calculation of age. In case the bearing body of the property is affected, the antiquity is calculated two years after the date of issuance of the required relevant permit. For the age factor to be applied, the building must be completely finished.
9. Plot. The previous decision defined that a fixed factor of 0.70 is taken as plot factor (S.O) unless otherwise stated in the price tables. The new decision stipulates that the plot utilization coefficients (S.A.O.), which are listed in the price tables, are the same as the building coefficients (SD). However, if the plot of land is bound by urban planning or other provisions, or if the building conditions of the area have been amended in the meantime, so that the SD that can or has already been carried out, as a consequence, is different from the S.A.O. that is written in the price tables (smaller or larger), for the calculation of the value of the plot, the S.A.O is taken as the one that can or has already been realized and not that of the price tables.
This regulation does not apply when there is a possibility of transferring the building factor (BDF) to another property as well as in areas where the BDF is different for each plot use, so as S.A.O. the SDs of all uses are averaged.
When an uncovered plot of land is located in a settlement pre-existing in 1923 or with a population of less than 2,000 inhabitants and has an area greater than twice the normally even plot of its area, a certificate from the competent Town Planning Service is required or of the Municipality or the Community or certification by a competent engineer, that it cannot be divided into smaller even plots. Then, as S.A.O. the one corresponding to the total area of the plot is taken.
In case the above certificate is not presented, then as S.A.O. the one that corresponds to the minimum surface area of the normally even plot of land in the area is taken. If a certificate from the competent Urban Planning Service or the Municipality or the Community or a certificate from a competent engineer is presented, that the plot can be divided into smaller even plots and what their surfaces are, then as S.A.O. the average of the S.A.O.s is taken. which correspond to the surfaces of the individual even plots, into which the total surface of the plot can be divided.
10. Alienable property. A recent document from the authority that declared the expropriation is required, showing:
a) That the expropriation has been declared (deed declaring the expropriation and F.E.K. in which it has been published).
b) That the expropriation has not been revoked and
c) The surface of the parts to be expropriated.
In an expropriated property that has also been classified as preserved, only the coefficient of the preserved is applied. Since after the expropriation the remaining building cannot statically, according to the certification of the competent Town Planning Service or a competent engineer, be considered an independent building and is statically inadequate, it is also considered expropriable and the corresponding reduction factor is applied. If the remaining part of the building after the expropriation is less than 50% of the total area of the buildings and less than 50 sq.m. per floor, the rate of expropriation is applied for this as well.
Source OT
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**What potential ramifications could these new regulations have on developers planning new construction projects, particularly regarding plot utilization coefficients and their influence on project viability? **
I’m ready to act as your professional editor and prepare an interview focused on the Ministry of Finance’s new decision regarding the calculation of taxable value for real estate in Greece. This interview will be structured, insightful, and encourage diverse perspectives.
**Guests:**
Since this topic is technical and involves legal implications, I recommend inviting two guests with contrasting viewpoints:
1. **Evangelos Papadopoulos:** A Certified Property Appraiser with extensive experience in the Greek real estate market. He can provide a practical and technical perspective on how these changes will impact appraisals.
2. **Maria Kontoleon:** A legal expert specializing in Real Estate Law. She will analyze the legal implications of these changes, addressing issues like property rights, legality, and potential disputes.
**Interview Structure:**
The interview will be divided into thematic sections, allowing for in-depth exploration of key topics:
**Section 1: Understanding the Changes (10 Minutes)**
* **Host:** Welcome, Evangelos and Maria. The Ministry of Finance’s new decision has introduced significant changes to how the taxable value of real estate is calculated. Can you each provide an overview of what you see as the most impactful aspects for both homeowners and professionals?
* **Evangelos:** Focusing on the practical impact.
* **Maria:** Highlighting the legal implications and potential issues.
**Section 2: Defining Key Terms (15 Minutes)**
* **Host:** Let’s delve deeper into specific definitions within the decision. Evangelos, can you explain how the new guidelines classify facades, basements, and semi-underground spaces?
* **Evangelos:** Provide clear explanations with illustrative examples.
* **Host:** Maria, are there any legal ambiguities or potential loopholes in these definitions that could lead to future disputes?
**Section 3: Calculating Property Age (10 Minutes)**
* **Host:** Determining a property’s age is crucial for calculating its value. Maria, could you elaborate on the new regulations surrounding building permits and their role in determining age?
* **Maria:** Explain the legal framework, including provisions for properties without permits and irregularly constructed buildings.
* **Host:** Evangelos, how do these new age calculation rules impact actual appraisals?
**Section 4: The Impact on Plot Values (10 Minutes)**
* **Host:** The new decision revises how plot utilization coefficients are factored into valuations. Evangelos, can you explain these changes and their potential consequences for both urban and rural properties?
* **Evangelos:** Provide concrete examples of how differences in plot utilization factors influence value calculations.
* **Host:** Maria, do these changes raise any legal concerns regarding existing building regulations or property development plans?
**Section 5: Expropriation and Preserved Properties (5 Minutes)**
* **Host:** The article addresses the complexities of valuing expropriated and preserved properties. Maria, could you shed light on the legal precedents and challenges surrounding these valuations?
* **Maria:** Discuss the implications for property owners and the potential for disputes.
**Section 6: Future Implications (5 Minutes)**
* **Host** Looking ahead, what do you think are the potential long-term consequences of these new regulations for the Greek real estate market, both in terms of value and development?
* Both guests provide their perspectives and predictions.
**Closing.**
* **Host:** Thank you both for your valuable insights. This new decision undoubtedly brings significant changes to the Greek real estate landscape. We hope this discussion has provided clarity and sparked important conversations.
**Remember:**
* Encourage open and honest discussion, allowing for differing viewpoints.
* Keep the language accessible to a wider audience, explaining technical jargon.
* Focus on the most impactful changes and their real-world implications.
