Greek government looking for 500 million additional revenue

With the single property tax the Greek government is trying to bypass Troika, which is pressing to keep the real estate hike through PPC in 2014 as well. In September when Troika will return to Athens, the economic team will attempt to convince the auditors that the new property tax will ensure the 2.7 billion budgeted in the memorandum and that it can deliver at least half or 1 billion euros more, which will cover part of the gap of 4 billion euros for the next two years.

To succeed, the economic team expects a lot from the real estate statements of 2013, as it will thus have a clear picture of the entire private property (residential, land parcels etc) and be able to implement the new tax rates so that the system can collect more from those who can and must pay.

In its latest report Troika showed it continues to question the ability of the Greek government to collect 2.7 billion from property taxes in 2014. This is why the auditors say they may request an extension of the special property tax (EETAA) as the government has failed to provide a credible alternative solution.

In drafting the new real estate tax the Finance Ministry will not be based on hypothetical data, but on the statements that will be made this year by the owners of land parcels.

For 2014 Troika asks that the single property tax will ensure 3.2 billion in taxes, to finally collect the 2.7 billion euros provided for in the memorandum. However, based on more realistic data, homeowners will be taxed according to their tax-paying ability. So from the first days of October, the Greek government wants to design the relevant taxation to increase collectability and reach 3.2 billion, or even increase the collection target up to 3.7 billion euros. Through the outperformance of the tax, it will avoid additional new measures and sacrifices that will be asked, especially if the cautiously optimistic forecasts to halt the recession by the end of the year get dashed.