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New Property Tax: Detailed Conditions and Supporting Documents for Tax Exemption in the purchase of a first home!!

With a complete exemption from any tax or with a very minimal tax burden, a young person can now, unmarried or married, to buy a first home…..

A recent change in the legislation on the taxation of parental benefits provides that donations of funds up to 150.000 euro, which are carried out by parents to children, are completely exempt from donation-parental benefit tax 10%, as long as the money is available from the children to buy a first home.

This change makes it easier to get a first home for thousands of young people taking their first steps in the bio-struggle, as it enables parents to give their adult children for this purpose the money they have saved for them, without being burdened with its onerous tax 10% which was valid until recently.

More specifically, to advance a parent to transfer money to their child up to 150.000 euros had to be paid as a donation-parental benefit tax 10% calculated on the amount transferred, that is, an amount up to tiw had to be paid to the state 15.000 euro.

essentially, the parent was forced to "cut" against 10% the amount he gave to his child in order to allocate this piece for the payment of the tax.

Now this too 10% is saved for the benefit of the child if the total amount of parental benefit is available from the child for the purchase of an apartment or house to be used as a first home.

Subsequently, as already provided for by the current legislation for many years, the purchase of a first home by the child is exempt from transfer tax 3% for an amount of value up to 200.000 euro, as long as this is unmarried, or for an amount of value up to 250.000 euro, if he is married.

consequently, It is now possible to acquire a house from a new taxpayer without any tax burden at all, both in the phase of obtaining the money for the purchase and in the phase of the purchase itself.

In the case where the child is given money by the parent total amount up to 150.000 euro, but the value of the house purchased exceeds this amount, then if the income or any income of the child is not sufficient to cover the remainder of the value, this can be covered by a bank loan which the child is entitled to receive with the parent guarantor.

also, in case the donation of the amount of money is greater than 150.000 euro, beyond 150.000 euro part of the amount of the donation is taxed minimally, just me 1%, for a total donation amount of up to 300.000 euro.

B.C. if the donation of the amount of money is 170.000 euro, then tax is imposed 1% the amount of 20.000 euro at which the donation exceeds the tax-free limit of 150.000 euro. In other words, a tax is imposed only 200 euro.

If the donation exceeds 300.000 euro, then taxed with 1% for the part of 150.000,01 to the 300.000 euro and 5% for the section above 300.000 euro.

But here we are talking about cases of wealthy parents, which are minimal in the case study we examine.

also, in the event that the first residence acquired by the child has a value higher than the applicable tax-free limit (of 200.000 euros for the unmarried child or 250.000 euros for the married), then a transfer tax is imposed 3% in the amount beyond the tax-free limit.

B.C. if the value of the first home acquired by an unmarried child is 220.000 euro, transfer tax is levied 3% the amount of 20.000 euros at which the value of the property exceeds the tax-free limit of 200.000 euro.

It, namely, tax 600 euro.


Tax-free limits for first residence

1) If the first residence is obtained from unmarried, the value of the home is exempt from tax up to the amount of 200.000 euro.

In case of acquiring a first home from married, the value is exempt from tax up to the amount of 250.000 euro.

The limit of tax-free value increases by 25.000 euro for each of the first two children and against 30.000 euros for the third and each of the following minor children, which is curated by the beneficiary.

The amount of the exemption also includes the value of one car parking space and one storage space, for surface of each up to 20 sq.m., provided they are on the same property and acquired at the same time.

also, in case of purchase of a plot of land on which a first residence can be erected, exemption from tax up to the value limit of 50.000 euros for the unmarried and up to the limit of 100.000 euros for married.

The limit is increased by 10.000 euros for each of the first two children and against 15.000 euros for the third and each of the beneficiary's subsequent children.

The above applies if the beneficiary receives only one house or a plot of land in full and in full ownership and not a percentage of indivisible.

Conditions for exemption

2) To recognize the right to exemption, should he or she who acquires the residence, the spouse or spouses and their minor children do not have the right of full ownership or usufruct or residence in another residence that meets the housing needs of the family and is located in a municipality or community with a population of more than 3.000 resident.

Also do not hold, in a municipality or community with a population of more than 3.000 resident, building plot, which corresponds to the area of ​​a building that meets their housing needs.

Housing needs are not considered to be met if the total area of ​​the buildings owned or can be erected by the beneficiary is below 70 sq.m., increasing by 20 sq.m. for each of the first two children and against 25 sq.m. for the third and each of the subsequent children of the beneficiary.


3) The supporting documents that must be submitted for the granting of the first home tax exemption are:

a) Certificate of marital status, of the beneficiary of the exemption and a marriage certificate or birth of a child, where appropriate, provided that the details of the marriage or birth do not appear on the certificate.

These supporting documents are not required to be provided by the beneficiary, but should be sought by the competent Tax Office ex officio.

If the beneficiary so wishes, has the opportunity to present the above certificates himself. There is no obligation of ex-officio search of the above supporting documents by the Special Registry for the respective events that have taken place abroad. The requested exemption will be granted after the issuance of the certificates for which the ex-officio search procedure has been applied.

b) Topographical, on which there must be a certificate from the competent public services or a statement from a private engineer that the acquired plot or the plot in which the acquired house is located is buildable and is located within an approved road plan or within the settlement boundaries without an approved plan.

In the event that a building permit has been issued by the competent department, instead of the previous supporting document, a photocopy of the license must be provided, if from it or the topographic diagram attached to it, if it exists, both the legally necessary conditions arise and the taxpayer declares responsibly in the statement of the next paragraph that what is mentioned in the building permit or in the topographic diagram has not been modified and is valid at the time of taxation..

c) Affirmation, of the article 8 of Law. 1599/1986, by which the beneficiary of the exemption will certify that:

* both he / she and his / her spouse and minor children do not have the right of full ownership or usufruct or residence in another house or in a building plot or an ideal share of a plot, located in a municipal or community district above 3.000 residents and who as a whole meet the housing needs of their family,

* neither he nor his spouse or their minor children have been exempt from transfer tax, inheritance or parental benefit for the acquisition of a first home in the past,

* resides permanently in Greece

* both he and his spouse or their minor children have not transferred in the previous five years for a burdensome or gratuitous reason the usufruct or the right of residence or an ideal share of residence or the small ownership or usufruct or an ideal share of land that met the mortgages needs of the family, aggregated with the other properties of the family,

* undertakes the obligation to present the required certificates on a case-by-case basis that may be requested by the Tax Office.

d) Detailed real estate situation (a printed variant of the well-known E9), according to the model provided by the Tax Office. This form is an integral part of the responsible statement of the previous case.

e) Document or documents proving the permanent residence of the beneficiary in Greece, on 1 at least one year before the exemption is granted. Proof of this fact can be done by any legal means.

B.C. Copies of tax returns may be submitted, certificates of insurance companies, employment contracts, certificates of attendance of children in schools in Greece, certificate of commencement of professional activity, lease of residence etc..

All the above supporting documents must be submitted to the competent Tax Office together with the declaration of real estate transfer tax before the signing of the final contract.

Source: Free Press

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