The Ministry of National Economy and Finance has presented a tax bill in Parliament, introducing major changes to the real estate sector. By overhauling existing regulations, the reforms aim to boost the property market and support economic growth through tax breaks, investment incentives, and more efficient processes. The measures also address key issues, such as housing affordability, short-term rentals, and climate change adaptation.

The new framework focuses on reducing tax burdens, streamlining processes, and fostering confidence among citizens and investors. With an emphasis on sustainable development and household support, the new regulations are designed to create a favorable environment for real estate, positioning it as a vital engine of economic growth.

Minor adjustments to the draft law may occur before its final approval, particularly regarding the three-year rule for vacant apartments. POMIDA (Hellenic Property Federation) has voiced concerns and proposed amendments that could shape the final version of the bill.

Key measures of the new framework include:

1. Tax Relief for Vacant and Short-Term Rentals:
Properties up to 120 m², declared vacant or used exclusively for short-term rentals in 2022, 2023, or 2024, will qualify for income tax exemption. This applies to leases of at least three years signed between September 8, 2024, and December 31, 2025, aiming to promote affordable long-term rentals.

2. Increased ENFIA Discount for Insured Properties:
From 2025, ENFIA reductions rise from 10% to 20% for homes worth up to €500,000, provided they are insured against disasters like earthquakes and floods.

3. Extended VAT Suspension on New Constructions:
The VAT suspension for new buildings continues until December 31, 2025, encouraging construction and investment.

4. Prolonged Capital Gains Tax Suspension:
Capital gains tax on property transfers will remain suspended until the end of 2026, simplifying transactions and attracting investment.

5. Permanent ENFIA Exemption for Heritage Properties:
Listed buildings valued up to €400,000 are permanently exempt from ENFIA, promoting cultural preservation by alleviating high maintenance costs.

6. Climate Resilience Fee:
A new fee will apply to tourist accommodations, varying by category and season, with funds used for disaster prevention and recovery.

7. Short-Term Rental Regulations in Athens:
Beginning in 2025, new short-term rental registrations will be prohibited in certain Athens districts. Violations will incur fines starting at €20,000.

8. ENFIA Exemption for Soufli Municipality:
Properties in Soufli Municipality will be ENFIA-exempt in 2025, 2026, and 2027, providing local economic support.

9. Expanded Housing and Energy Programs:
The “My Home” program will offer expanded housing loans and greater subsidies for energy-efficient upgrades. The “Renovate – Rent” program’s funding cap increases from €10,000 to €13,500, covering 60% of renovation costs.

image credit: www.freepik.com