New Unified Real Estate Tax (U.R.E.T. – ΕΝ.Φ.Ι.Α., Law 4223/2013)
From 2014 and for each year subsequent thereto, a new tax is levied on real estate property located in Greece, namely the Unified Real Estate Tax (U.R.E.T.) – ΕΝ.Φ.Ι.Α., upon introduction whereof the current Real Estate Tax (RET – ΦΑΠ) is abolished.
U.R.E.T. is equal to the total sum of a) the main tax on each real estate plus b) an additional tax on the total value of each taxable person’s rights on real estate property, on which U.R.E.T. is levied.
For assessment purposes, the actual condition of each real estate as evidenced by the definitive entry in the Cadastral Office’s records; or otherwise (i.e. in lack of such entry), the details of the real estate as extracted from the title of acquisition; or otherwise (i.e. in lack of such title), the actual condition of the real estate as evidenced by any other means (e.g. other documents), is taken into account.
A. Object of U.R.E.T.
U.R.E.T. is mainly levied on the following rights on real estate located in Greece and owned either by individuals or legal persons or legal entities of any kind on January 1st of each year:
a) The property rights of full ownership, bare ownership, usufruct, habitation and surface on the real estate.
In this regard, the following should be noted:
• The full owner is liable to pay the total U.R.E.T. levied on the real estate based on her/his percentage of joint ownership.
• If usufruct has been granted, the total U.R.E.T. levied on the property is allocated to the bare owner and the usufructuary as follows [assumption: usufructuary is not an individual]:
a) The tax attributable to usufruct is set at 8/10 of the tax attributable to full ownership.
b) The tax attributable to bare ownership is assessed if the tax attributable to usufruct is deducted from the tax attributable to full ownership.
• The main tax attributable to habitation and to the right to surface is equal to the tax attributable to usufruct. In such case, the tax attributable to full ownership is equal to the tax attributable to bare ownership.
b) The property or contractual rights in connection with the exclusive use of parking spaces, ancillary spaces and swimming pools located on a jointly-owned part of the real estate and being appurtenant to the above (principal) property rights. The main tax attributable to these rights is assessed depending on the (principal) property right on the real estate which they are appurtenant to and its percentage thereon.
The rights on which U.R.E.T. is annually levied are those existing on January 1st of the year of taxation regardless of possible changes during that year and regardless of whether the title of acquisition has been registered or not.
For U.R.E.T. purposes, real estate leased or otherwise granted for use to a third party is deemed not to be owner occupied by the taxable person; any other real estate is deemed to be owner occupied.
B. Subject to U.R.E.T.
Subject to U.R.E.T. is each individual or legal person as well as each legal entity of any kind depending on their right on the real estate and their percentage thereof, and in principle each person who acquires a right on a real estate on any grounds, from the date of the final (notary) deed of acquisition or the date on which the judgment of a court acknowledging a right on a real estate or obliging the transferor to a declaration of intent becomes irrevocable.
C. Exemptions from U.R.E.T.
Exempt from U.R.E.T. is, among others, each right on real estate, for which there is a prohibition of use of any kind pursuant to the pertinent Urban Planning imposed by government bodies (mainly a zoning encumbrance, a zoning expropriation, a seizure of the real estate for public utility or public use or for monuments and antiquities protection reasons, particularly seizure for archaeological excavation purposes, designation of an archaeological site, as well as for environmental protection reasons), exclusively for the part of the real estate to which the prohibition applies.
Any other general or special provision on exemptions from taxes or duties is not applicable to U.R.E.T., except for Government concession agreements already ratified by law up to the day of introduction of the draft law for U.R.E.T. to the Parliament for adoption (December 12th, 2013), as long as they provide for full exemption from real estate taxes.
D. Calculation of main tax
1.) Buildings
The main tax on the rights on buildings is calculated based on: a) the geographical location, b) the surface, c) the use, d) the age, e) the floor and f) the number of building facades, whereby increase and decrease multipliers are applied as follows:
a) Basic Tax (B.T.) per tax zone (T.Z., which corresponds to the zone value) as per the following table:
| Zone Value (€/m2) | T.Z. | B.T(€/m2) |
| 0-500 | 1 | 2,00 |
| 501-750 | 2 | 2,80 |
| 751-1.000 | 3 | 2,90 |
| 1.001-1.500 | 4 | 3,70 |
| 1.501-2.000 | 5 | 4,50 |
| 2.001-2.500 | 6 | 6,00 |
| 2.501-3.000 | 7 | 7,60 |
| 3.001-3.500 | 8 | 9,20 |
| 3.501-4.000 | 9 | 9,50 |
| 4.001-4.500 | 10 | 11,10 |
| 4.501-5.000 | 11 | 11,30 |
| 5.001+ | 12 | 13,00 |
b) Building Age Multiplier (B.A.M.) set at 1,00 to 1,25.
c) Building Surface Impairment Multiplier (S.I.M.) set at 1,00 to 0,25, which applies to the main spaces of special buildings (i.e. industrial buildings, hotels and tourist facilities in general, sport facilities etc.).
d) Floor Multiplier (Fl.M.) set at 0,98 to 1,03. The Fl.M. does not apply to special buildings and detached houses.
e) In case of detached houses, Detached House Multiplier (D.H.M.) set at 1,02.
f) Facade Multiplier (F.M.) set at 1,00 for buildings without facade(s), at 1,01 for buildings with one facade and at 1,02 for buildings with two or more facades. The F.M. does not apply to ancillary spaces and special buildings.
g) Ancillary Spaces Multiplier (A.S.M.) set at 0,10.
h) Unfinished Buildings Multiplier (U.B.M.) set at 0,40, which applies to unfinished buildings notwithstanding the construction stage.
i) Special Buildings Multiplier (S.B.M.) set at 0,50. The S.B.M. does not apply in cases where the A.S.M. applies.
In view of all above, the main tax on rights on buildings (except for special buildings) is equal to the following product:
Main tax (U.R.E.T.)
=
Building surface (m²) x BT x BAM x FlM or DHM x FM x ASM (where applicable) x UBM (where applicable)
whereas in case of special buildings the main tax is equal to the following product:
Main tax (U.R.E.T.) for special buildings
=
Building surface (m²) x BT x SBM x BAM x SIM x ASM (where applicable) x UBM (where applicable)
2.) Lots (plots located within city/town plan)
a) Lots are classified into tax zones, and a tax rate/multiplier (TR) is specified (ranging from 0,003 €/m2 to 9,000 €/m2) based on the unit value of each lot.
b) The Unit Value of each lot per m2 is the ratio of the taxable value of each lot to its total surface.
c) The taxable value of each lot is equal to the product of the lot multiplier, the total opening value of the lot, the facade multiplier and the surface of the lot.
d) Lots located within an Integrated Development Plan (provided for by Law 4062/2012) and only until they are transferred by the investment entity to third parties, as well as lots located within Industrial Areas, Industrial Business Areas and Business Parks are classified in the first tax zone.
e) If there is a building on the lot, the surface of the lot for which the main tax is levied is equal to the remainder of the total surface minus the surface of the lot which the lot utilization (coverage) multiplier (L.U.M.) corresponds to according to the part of the construction already completed:
Lot surface for which U.R.E.T. is levied in cases where there is a building
=
total surface of the lot
MINUS
lot surface which the LUM corresponds to according to the part of the construction completed
In view of all above, the main tax is equal to the following product:
Main tax (U.R.E.T.)
=
Lot surface (m²) x TR
3.) Other plots (plots located outside of city/town plan)
The main tax is calculated based on the Basic Tax Rate/Multiplier (B.T.R), which is set at € 0,001/m², by applying the location, use, irrigation, expropriation and existence of residence multipliers, where applicable, as follows:
a) Location Multiplier (L.M.), which ranges from 1,0 to 3,0 depending on the location which the minimum Initial Basic Value (I.B.V.) of the Municipal Unit, where the plot is located, corresponds to.
b) Use Multiplier (U.M.), which ranges from 0,1 to 8,0 depending on the use of the plot.
c) Irrigation Multiplier (I.M.) set at 1,10.
d) Expropriation Multiplier (E.M.) set at 0,75.
e) Residence Multiplier (R.M.) set at 5 if there is a residence on the plot. The R.M. applies to the total surface of the plot without deducting the surface of the building. If the plot has a surface exceeding 10.000 m2, the multiplier applies to the surface up to 10.000 m².
In view of all above, the main tax is equal to the following product:
Main tax (U.R.E.T.)
=
Plot’s surface (m2) x BTR x LM x UM x IM x EM (where applicable) x RM (where applicable)
Especially for plots located outside of city/town plan, however within an Integrated Development Plan (provided for by Law 4062/2012) and only until they are transferred by the investment entity to third parties, as well as for plots located within Industrial Areas, Industrial Business Areas and Business Parks, the main tax is equal to the product of the plot’s surface and the Basic Tax Rate/Multiplier, as per above.
E. Calculation of additional tax
Individuals
The additional tax is calculated at a rate ranging from 0,1% to 1,0% on the total value of each taxable person’s rights on real estate property on which U.R.E.T. is levied; total amounts up to € 300.000 are exempted from the additional tax. The total value does not include, among others, the value of the rights on plots located outside of city/town plan.
Legal persons / legal entities of any kind
The additional tax is calculated at a rate of 5‰ on the total value of each taxable person’s rights on real estate property on which U.R.E.T. is levied. The total value does not include:
a) The value of the rights on real estate of legal persons and legal entities which are exempted from U.R.E.T. and for the part of the specific exemption as per above.
b) The value of the rights on real estate which are located within an Integrated Development Plan (provided for by Law 4062/2012) and only until they are transferred by the investment entity to third parties, as well as on real estate which are located within Industrial Areas, Industrial Business Areas and Business Parks.
c) The value of the rights on buildings as well as on lots and other plots, as per above, which are owner occupied for production/manufacturing purposes or in the course of any other business activity notwithstanding the scope of business.
F. Assessment of U.R.E.T. & time of filing of return
U.R.E.T. is assessed by the Secretariat-General Public Revenue (SG PR) through an administrative tax assessment act issued in accordance with the pertinent provisions of the Tax Procedure Code (Law 4174/2013).
For the 2014 U.R.E.T. assessment SG PR shall refer to the real estate data indicated in the returns stipulated by Law 3427/2005; in particular, for individuals SG PR shall refer to the 2005-2014 real estate data returns, whereas for legal persons SG PR shall refer to the 2013-2014 real estate data returns. The details extracted therefrom shall constitute the “2014 U.R.E.T. Return”, which shall be electronically processed by SG PR and shall be used as basis for the assessment of U.R.E.T.
For the assessment of U.R.E.T. for each year subsequent to 2014, SG PR shall refer to the real estate data indicated in the U.R.E.T. return of the preceding year as amended in the current year. In this regard, from 1.1.2014 onwards, for the creation, acquisition and any other change in the rights on which U.R.E.T. is levied each taxable person is obliged to file a real estate data return within 30 days of the day of creation, acquisition and any other change therein.
G. Discounts and payment deferral
Discounts
A discount of 50% or 100% is granted to the taxable person (individual), her/his spouse and their children on certain conditions evidencing financial inability to pay the total amount of U.R.E.T. due by anybody of them in the respective year.
Payment deferral
A payment deferral may be granted to legal persons by SG PR on certain conditions. The deferral refers to the U.R.E.T. due in a certain year and may be re-granted up to 3 times within a period of 10 years of the day the first deferral was granted.
The conditions, which must be cumulatively met, are the following:
a) The legal person’s total turnover in the previous tax year does not exceed 10 times the total tax;
b) The legal person’s total turnover in the previous tax year fell by more than 30% compared to the tax year preceding thereto; and
c) The legal person does not have any overdue debts to the State and the Social Security Funds and is not liable for any such debts.
H. Payment of U.R.E.T.
U.R.E.T. must be paid:
a) either in a lump sum, by the last working day (for public services) of the month subsequent to the one in which the tax assessment act was issued; or
b) in equal monthly installments, each of at least € 10, whereof the first one by the last working day of the month subsequent to the one in which the tax assessment act was issued, and the last one by the last working day of December of the same year.
I. Joint liability
The legal representatives of legal persons and legal entities of any kind which are subject to U.R.E.T., as well as the liquidators thereof are jointly and severally liable for the payment of any surcharges and penalties in connection with U.R.E.T., which are due to their actions or omissions.
Furthermore, the persons who acquired full ownership, bare ownership, usufruct or right to surface on a real estate are jointly with the taxable person and severally liable for the payment of the U.R.E.T. attributable to the respective right they acquired.