Greece lightens fiscal burden on landlords hit by COVID-19 consequences
The Greek government has amended a recent law to lighten the tax burden on property owners whose tenants paid less in rent than before the COVID-19 crisis. Should their losses amount to 40% of what they would have earned if not for the pandemic, they may pay less tax.
This initiative was reported by Greek law firm Zepos & Yannopoulos, who note that the tax reduction will amount to 20% of the 60% of rent received. This reduction is applicable to several taxes paid by landlords (in descending order): individual income tax, the special solidarity contribution, entrepreneur duty and the tax on luxury living, followed by the ENFIA unified property tax, VAT, and finally, any other applicable tax.
The goal of this initiative is to reduce the fiscal burden shifted onto landlords as rent payments dwindled amid the COVID-19 pandemic and lockdown. It is hoped that this initiative will dissuade property owners from selling their real estate, so they can continue to play their role in the country’s economy.
The Greek government is hoping for tourism to rebound as borders open, and they need a strong real estate sector to support it.