Tax bill: four incentives for property purchases with ENFIA, VAT and tax exemptions

The tax bill submitted to Parliament proposes to reduce the tax burden for those investing in real estate, especially protected and closed properties.

Last-minute additions see listed properties permanently exempt from VAT; The extension of the suspension of VAT on newly built properties until the end of 2025 ensures that prices remain stable in the real estate market. It also has plans to increase purchases and extend the three-year property tax levy. tax exemption for properties that are closed or short-term leases converted to long-term leases.

The purpose of these provisions is to reduce the tax burden by giving emphasis to both listed and attached properties. At the same time, positive measures are being taken to strengthen the real estate market and attract the attention of local and foreign investors.

Relevant provisions of the tax law

– Extension of VAT postponement in new buildings until 31.12.2025

As a reminder, 24% VAT was applied to property purchases in 2006 and was valid for properties with a building permit from 1 January 2006, excluding the purchase of first homes. The VAT postponement, which started in 2020, has been extended until the end of 2025. This is expected to further support the upward trend in the real estate market and attract more investments, especially from abroad.

– Permanent exemption from ENFIA for listed buildings valued up to €400,000.

This is a significant relief for property owners, especially those who are considering renovating such properties. This category also includes investors from third countries. Golden Visa in Greece. The legislation provides for a low investment threshold of 250,000 euros for listed buildings across the country, and this is expected to be an incentive for their purchase and restoration.

– Extension of the suspension of capital gains tax on real estate transfers until 31.12.2026

goodwill taxThe amount of 15% of the difference between the purchase price and the sales price remains “frozen” for another two years. The fact that taxpayers who transfer property until the end of 2026 will not be subject to this tax will facilitate liquidity and encourage more transactions in the real estate market.

– Income tax exemption for rental properties for 3 years

One of the most innovative provisions in the bill is income tax exemption For properties previously declared vacant or used for short-term rental.

Conditions of the exemption include:

• ◦ The surface area of ​​the property must be up to 120 m2.
• ◦ Three-year leases must be made between September 8, 2024 and December 31, 2025.
• ◦ Will be declared vacant property or available for short-term rental only in the 2022, 2023 and 2024 tax years.

The government is considering reducing the time it takes to move from short-term to long-term rentals and increasing the sustainable use of property.