Property Transfers in Greece Just Got Easier

The Independent Authority for Public Revenue (AADE) is putting an end to delays in property transfers by making life easier for taxpayers. According to the new regulations recently activated, property transfer tax declarations related to the creation, modification, or dissolution of horizontal or vertical property ownership—whether within or outside the objective value system and involving tax due—have gone digital.

Property Transfers

Taxpayers no longer need to visit the Tax Office or the Capital Taxation Office, known as KEFOK, to submit these declarations. Instead, they can do so via the myPROPERTY platform.

Every property transfer file will be mandatorily reviewed by the competent tax services within 60 days. If additional documents are required, taxpayers will be asked to submit them within 15 days.

AADE Guidelines

AADE has issued an updated guide that breaks down all the changes aimed at making the property transfer process easier for taxpayers. In particular:

1. Which declarations are submitted digitally through the myPROPERTY app?

a) Initial property transfer tax declarations in areas covered by the objective value system (APAA), if they:

• Involve the creation, modification, or dissolution of horizontal or vertical ownership, with or without buildings,
• Include the transfer of property rights, distribution, exchange, or consolidation of properties, and
• Result in a tax obligation.

b) Initial declarations for properties outside the objective value system involving the creation, modification, or dissolution of horizontal or vertical ownership, with or without buildings, regardless of tax liability.

c) Declarations canceling the drafting of notarial acts for the creation, modification, or dissolution of horizontal or vertical ownership, if the original declarations were submitted via the digital “Property Transfer Tax Declaration via Tax Office/KEFOK” app.

If digital submission is not possible due to proven technical issues, the declaration must be submitted in hard copy to the competent Tax Office/KEFOK via the “My Requests” application.

2. Where and how are amended property transfer tax declarations submitted?

Currently, if the original declarations were submitted via myPROPERTY, any amendments must be submitted to the Tax Office/KEFOK where the original was filed, through the “My Requests” section of the myAADE digital services.

3. How is the initial property transfer tax (PTT) declaration submitted via the Tax Office?

The declaration is filled out by a certified notary preparing the notarial deed and submitted by the taxpayer or their legal representative using their TAXIS credentials. The notary describes the current status of the properties and any changes resulting from the creation, modification, or dissolution of ownership. They also input the property values using the Valuation Sheets (FYAA) or the market value for non-objective value system properties, along with any applicable legal exemptions. The submission date is considered the date of the last entry made by the taxpayer.

4. In how many days is the contract reviewed?

Within 60 days of the notarial act being uploaded to myPROPERTY, the competent service checks the accuracy of the declaration and ensures it matches the content of the notarial deed. If additional documentation is required or a mistake is found that affects the tax amount (e.g., lower tax due), the taxpayer will be invited to submit the missing documents or an amended declaration within 15 days of receiving the notice. If they fail to do so, the head of the AADE department will issue and serve an audit order.

5. How is a declaration cancelled if the parties disagree before acceptance?

The notary deletes the temporary declaration from the app by selecting “Delete Temporary Declaration.”

If the disagreement occurs after acceptance, the tax declaration is cancelled as follows: The notary selects “Cancel Declaration Due to No Contract Being Drafted” if the relevant contract hasn’t been drawn up and its number and date haven’t been entered into the system.

The cancellation is sent to the competent office for review. Once an official approves it, a document (AFEK) is generated allowing the taxpayer to reclaim any tax paid.

Source: tovima.com