Greek Property Tax to Only Affect 5-10% of Home Owners

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An expected real estate tax is apparently only going to affect around five percent of property owners for 2010 and only ten percent of home owners for the tax years 2011 and 2012.

According to a press release from the Ministry of Finance, notices for real estate property tax (FAP) for the years 2010 through 2012 which are currently being mailed out now will only affect a low percentage of home owners. The ministry noted that for the year 2010 there were only around five percent of home owners whose property was valued at over 400,000 Euros per person or a maximum of 800,000 Euros for a couple, the cut-off point for the tax.

It also asserted that for 2011 and 2012 the percentage of property owners that are going to be obligated to pay a property tax is to rise up to ten percent for property valued at 200,000 Euros or more, a rise attributed to the reduction in tax exemptions.

The ministry added that it placed a priority on extending the tax valuation system to all areas of Greece including property currently outside town plans, in the framework of creating stability in the taxation base for real estate.