The Government proposed last week to the Parliament the adoption of yet another tax on real property; this new tax, the 'Special Tax on Real Property', is going to be imposed on buildings that are connected with the electricity network (either through DEI - the Public Electricity Company - or through any alternative electric power service provider).
The imposition of this tax has raised significant criticism because (i) it is not connected with the ability to pay of the taxpayers and (ii) in case of no payment the taxpayer is punished by deprivation of access to electricity!
The imposition of this tax has raised significant criticism because (i) it is not connected with the ability to pay of the taxpayers and (ii) in case of no payment the taxpayer is punished by deprivation of access to electricity!
The Ministry of Finance announced on 15 September 2011, that this tax is going to be calculated according the following rates per square meter, which increase as the regulated value of the real property (set by ministerial decisions and depending on the location of real property) increases.
So for example the amount of the Special Tax on Real Property for a 100 square meter house located in an area where the regulated value is set at 2.000 euros/square meter, is 600 euros (6 euros X 100 square meters).
The Ministry published the following table:
Amount of Tax (€/m2) Regulated Zone Value
0,5 for vulnerable groups
3 up to € 500
4 € 501-1000
5 € 1001-1500
6 € 1501-2000
8 € 2001-2500
10 € 2501-3000
12 € 3001-4000
14 € 4001-5000
16 € 5001 and higher
The tax is adjusted upwards according to the age of the building, following this table
Age of building Adjustment Rate
up to 26 years 1
25-20 years 1,05
19-15 years 1,1
14-10 years 1,15
9-5 years 1,2
4-0 years 1,25
The tax burdens the property owner. It will be collected through the electricity bills that will be sent to the taxpayers.The Public Electricity Company (DEI) or any other service provider has the obligation to collect the tax on behalf of the state. In case the tax is not paid the collector is obliged to discontinue the electricity service to the building for which the tax was not paid.
So for example the amount of the Special Tax on Real Property for a 100 square meter house located in an area where the regulated value is set at 2.000 euros/square meter, is 600 euros (6 euros X 100 square meters).
The Ministry published the following table:
Amount of Tax (€/m2) Regulated Zone Value
0,5 for vulnerable groups
3 up to € 500
4 € 501-1000
5 € 1001-1500
6 € 1501-2000
8 € 2001-2500
10 € 2501-3000
12 € 3001-4000
14 € 4001-5000
16 € 5001 and higher
The tax is adjusted upwards according to the age of the building, following this table
Age of building Adjustment Rate
up to 26 years 1
25-20 years 1,05
19-15 years 1,1
14-10 years 1,15
9-5 years 1,2
4-0 years 1,25
The tax burdens the property owner. It will be collected through the electricity bills that will be sent to the taxpayers.The Public Electricity Company (DEI) or any other service provider has the obligation to collect the tax on behalf of the state. In case the tax is not paid the collector is obliged to discontinue the electricity service to the building for which the tax was not paid.
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