2018-05-25

(english) Real Estate

By Γραφείο Τύπου

Real Estate

   The exploitation of citizens’ real estate property is a matter interrelated to the existence of a stable tax and business environment, through which motives for exploitation may be given, to the benefit of the citizen and the whole country.

In the midst of the economic crisis of our country, it is observed that the state demands that our fellow citizens, though unemployed or with reduced income, pay for taxes, that is cash, for land or real estate which do not yield income to their holders.

By law, a citizen who may not be able to possess income from real estate, may not be able to pay for the taxes charged at the same time.

Even worse, the collapse of the real estate market (due to reduction in real estate values), forces our fellow citizens to sell, with the simultaneous absence of buyers.

One of the measures to facilitate our fellow citizens is the funding of Land Banks by the Municipal authorities, which are the ones responsible for their proper operation.  

The Land Bank, is an organization already existing and working in municipalities of the economically advanced countries and it aims, among other things, at facilitating the citizens who cannot afford to pay for income taxes.

How does this work:

A natural / legal person who cannot afford to pay for income taxes, declares and provides documentation to the Land Bank for this financial weakness.
After the registration, the natural / legal person undertakes the obligation to exploit their property in any way:

– Own business exploitation.
– Renting.
– Contractual consideration (land-for-apartment exchange system).
– Sale.

In each of the above cases, the taxation of real estate continues to exist for every year it has not been regularized and it is assessed cumulatively.

In the case of property sale, the total amount of taxes is withheld from the transaction value.

In the case of commercial exploitation of the property, the tax paying off is facilitated through partial payment, in percentage and in compliance with the  profitability of the business activity or the total earnings of the private holder and up to paying off previous debts.

Fixed positions of Enosi Kentroon about real estate:

Establishing a tax-free allowance for the first residence for all our fellow citizens.

When the financial conditions allow, establishing a tax-free allowance for the second residence as well.

Tranfer of the property tax to the Municipal authorities as well as the responsibility to collect it, as they are the most competent in knowing the property value of their jurisdiction.

Meanwhile, the municipal authorities will have a stable income on their part, able to support them and allow them to self-regulate, with the state acting as a supervisor and not as an administrator towards the Municipalities.

Taxation of property based on the real market value.

Establishing a taxation percentage, able to bring income to the municipal authorities and neither cause taxpaying problems nor condemn our fellow citizens.

In order for the exploitation of property to function well, first  the suggestion of Enosi Kentroon has to be applied, in order to reform our taxation system and our business environment.