The Ministry of Environment and Energy is categorizing building permit holders into five groups with incentives under the New Building Regulation. This step aims to comply with the Council of State decisions that deemed certain provisions of the legislative framework unconstitutional and to alleviate the market uncertainty that has hindered construction activities for months.
This includes individuals who have started excavation work before December 11, 2024, for legally issued permits that haven’t yet commenced (approximately 2,500). It also encompasses permits currently under construction—which may be nearing completion—but have been halted due to ongoing appeals or pending cancellation requests (about 200).
The regulation also addresses individuals included in various financial initiatives (Recovery Fund, NSRF, TAA) and those with specialized urban planning schemes for public and strategic investments (ESXASE-ESXADA), such as the Hellenikon project. Notably, it protects listed buildings and monuments to ensure their preservation and enhancement. Outside the legislative framework, decisions from the Council of State have resulted in the exclusion of lofts from building factor calculations and the classification of pools as planted surfaces, which were deemed unconstitutional.
The new regulation, endorsed by Minister Stavros Papastavrou and Deputy Minister Nikos Tagaras (while initially drafted by Theodoros Skylakakis), seeks to restore normalcy in private construction and address the legal ambiguities faced by property owners, buyers, investors, builders, and the administration. This will be executed through a consistent application of the law, without relying on prior scientific research or specific regional needs.
The Beneficiaries
The new framework allows for the continuation of projects that legally commenced before December 11, 2024. This group can proceed with their building permits without any revisions or additional costs, and they have the option to review their permits free of financial burdens (taxes, fees, levies, deductions).
Subsequently, a Presidential Decree, in accordance with the guidelines from the CSC, will detail the terms and conditions for proving that work has commenced by December 11, 2024—a date set by the Council of State in its summary decision regarding the division of building permits.
Additionally, strategic investments (ESHASE, ESHADA, etc.) will also be exempt from financial compensation requirements to secure issued building permits, as it is believed that sufficient scientific documentation has already been provided for these and listed buildings.
Permits Needing Review
A distinct approach is being taken by the WFP for those unable to start work by December 11, 2024. While this category retains its right to build, they will need to revise their building permits to eliminate NOC incentives and surcharges.
The regulation states that individuals who review their permits will be exempt from taxes, fees, levies, or deductions. This measure is already gaining support in the market, as the potential loss of incentives outweighs the cost of minor fees. The relevant Building Services are expected to expedite these reviews without delay.
Who Will Bear Costs for NOC Construction
Two categories of building permits will incur costs for construction under NOC incentives: those who have had a court cancellation ruling or a pending cancellation application, and who commenced building work by December 11 to mitigate the issue of abandoned buildings.
Specifically, if the load-bearing structure of a building is completed, construction can proceed immediately with NOC incentives, provided that the environmental equivalent is paid, and the preparation of the ESIAP is initiated.
If the load-bearing structure is incomplete, the Central Council of Architecture and the Central Council of Urban Planning and Disputes will evaluate, based on technical, social, economic, and legal criteria, whether to continue the building permit implementation with NOC incentives. Upon securing necessary approvals, construction can proceed, contingent on environmental fees being paid and the NOCIAP’s preparation initiated.
Additionally, the ministry has provisions for investors holding building permits under European funding programs (NSRF, TAA) to ensure the successful implementation of these projects and maintain state credibility.
In this context, the Ministry of Environment is establishing an environmental equivalent that compensates for utilizing NOC incentives. This equivalent entails: a) a fee payable by the owner and developer, deposited in a Special Account for the benefiting municipality, and b) targeted actions aimed at upgrading the Municipal Unit or Municipality where construction occurs with NOC incentives. These plans will be detailed in a Special Environmental Equivalent Urban Upgrading Plan.
Understanding the Environmental Equivalent
To utilize the NOC incentives, the environmental equivalent must be paid and approved. The goal is to maintain permits that enhance the financial credibility of the Greek State with the European Union and uphold international investment confidence.
What is the ESPIAP?
The ESPIAP (in Greek) refers to a Specific Environmental Equivalent Urban Upgrading Plan, which will detail targeted actions at the Municipality or Municipal Unit level, where NOC incentives are applied. This plan, developed within two years of the regulatory framework’s adoption, offers legal protection and the ability to utilize incentives without altering the building permit. It may encompass area descriptions, an analysis of legal concerns, environmental assessments, management proposals, implementation timelines, and financial evaluations.
A Presidential Decree will enable the specification of environmental equivalence measures, the approval process for the ESPIAP, and the fee amount and procedure.
Potential measures may include creating green spaces, redeveloping heavily constructed areas, urban infrastructure enhancements (such as pedestrian pathways and lighting), and prioritizing the demolition of unsafe buildings. Furthermore, the acquisition and restoration of listed buildings and monuments by the municipality may be financed, along with environmental actions like stream cleanup and settlement projects.
Lastly, for strategic investments, a Presidential Decree will be issued upon the recommendation of the Minister of Environment and Energy and the opinion of the Central Council for Urban Planning Issues and Disputes to approve the implementation of NOC incentives. This request must include specific documentation within three months of the regulation’s start.
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