Guidelines for the application of notional income for FY 2011

The Ministry of Finance issued guidelines (Circular POL. 1259/28-12-2011) for the application of the new notional income criteria (TEKMERIA), that were enacted by article of 28 Law 3986/2011, are in force as of 1-1-2011 and will affect the income to be declared in the income tax returns of fiscal year 2011 that will be submitted in March 2012.
These TEKMERIA concern the use or ownership of certain types of assets, such as a main residence, a secondary residence, a swimming pool, a car, a boat or a yacht.

In particular
(please note that the examples are my own and they are not part of the Circular 1259/2011):

1)      Residence:

This is calculated based on the total surface of the residence, according to the following categories:

a.       For the first 80 square meters of a residence, the notional income is 40 euros per square meter;

b.      For the additional 40 square meters (81-120), the notional income is 65 euros per square meter;

c.       For the additional 80 square meters (121-200), the notional income is 110 euros per square meter;

d.      For the additional 100 square meters (201-300), the notional income is 200 euros per square meter;

e.       For any additional square meter of surface above 300 sq.m. (301+) the notional income is 400 euros per square meter.

f.        For the auxiliary rooms/areas, the notional income is 40 euros per square meter (eg the garage).

EXAMPLE: a residence of 150 square meters with a garage of 10 square meters, results in a notional income of 9.500,00 euros.

(80 m2 X 40 e/m2 = 3200 euros; plus: 40 m2 X 65 e/m2 = 2600 euros; plus: 30 m2 X 110 e/m2 = 3300 euros; plus: garage 10m2 X 40 e/m2 = 400 euros).    

The above mentioned amounts are increased by a coefficient (40% or 70% depending on the area where the residence is situated; all amounts are further increased by a 20% in case of detached houses).        

For a residence that is not used as main residence but it is a secondary one (this applies to summer houses for example), the notional income is calculated in the same manner as for the main residence but a reduction of 50% applies.

In the EXAMPLE used above, if the residence is a secondary residence, the notional income would be 4.750,00 euros.   

2)      Swimming pool:
For a swimming pool of up to 60 square meters, the notional income is 160 euros per square meter; For any additional square meters over the first 60, the notional income is 320 euros per square meter.

3)      Vehicles
a.       For vehicles up to 1200 cc, the notional income is 4.000 euros

b.      For vehicles more than 1200cc, an extra 600 euros is added per 100 cc (up to a total of 2000 cc)

c.       For vehicles more than 2000 cc, an extra 900 euros is added per 100 cc (up to a total of 3000 cc)

d.      For vehicles more than 3000cc, an extra 1200 euros is added per 100 cc.

EXAMPLE: a car of 3500cc results in a notional income of 23.800 euros.

(4000 euros for the first 1200 cc plus 4800 euros for the 800 cc up to 2000cc, plus 9000 euros for the 1000cc up to 3000 cc plus 6000 euros for the 500cc over the 3000cc).

4)      Boats:
For a boat up to 5 meters long, the notional income is 4000 euros. For boats over 5 meters long, the notional income of 4000 is increased by additional 2000 euros per meter.
 
5)      Yachts
a) for total length up to 7 meters, the notional income is 12.000 euros, b) for every meter above 7 and up to 10 meters of total length, 3000 euros per meter are added,

c) for every meter above 10 and up to 12 meters of total length, 7500 euros per meter are added  


d) for every meter above 12 and up to 15 meters of total length, 15000 euros per meter are added,

e) for every meter above 15 and up to 18 meters of total length, 22.500 euros per meter are added,

f) for every meter above 18 and up to 22 meters of total length, 30.000 euros per meter are added and

g) for every meter above 22 meters of total length, 50.000 euros per meter are added.