News

A three-year suspension of Value Added Tax

In Greece lately, it has been frequently argued that the new tax suspension measure aims to revive the real estate market. But is that true? Unfortunately and fortunately, many people are not aware of the matter. The already applicable arrangements, which have come into force on the 1st of January, require any new construction to be a Nearly Zero Energy Building.

In other words, nowadays any new construction should fall into A energy class instead of a B class, as has been required previously. Therefore, as market players explain, for the constructions that have not been granted building permits by the end of 2019 the construction cost is going to increase by 15% or sometimes even by 60%.

The deduction of VAT on building materials is now going to be solely a constructor’s burden (from 16% to 19%), including social insurance and income tax.