Alongside plans for new direct tax cuts, the government is actively working to boost property supply to meet demand, lower prices, and tackle high rent issues.
The economic team is examining various strategies, including leveraging around 25,000 properties held by banks and debt management firms. “We are implementing a mix of measures to offer new incentives for property owners to rent out vacant homes more easily, streamlining processes,” stated Minister of National Economy and Finance, Kyriakos Pierrakakis.
While proposals such as capping rent increases have been dismissed, discussions are underway regarding tax reductions for landlords renting out their properties. This aims to encourage the opening of closed properties and enhance supply. Specifically, a uniform tax reduction or a new intermediate tax rate for rental income between €12,001 and €20,000 is being considered to avoid the sharp jump from the current rates of 15% to 35%.
Property Ownership and Management Registry
Simultaneously, the Property Ownership and Management Registry, known as “MIDA,” is set to launch this summer. Its primary objective is to identify undeclared rental income or incorrect reported amounts, thus facilitating tax return preparation.
Property owners will register their leases on the platform, and the AADE will automatically retrieve the necessary data for E1 and E2 forms. This means tax returns will almost be ready for taxpayers, who will only need to verify and correct any discrepancies. Additionally, tenants will be able to view what their landlords declare regarding the property they occupy.
In the near future, the Ministry of Social Cohesion and Family plans to introduce legislation for social compensation regarding public properties. This new framework aims to improve and incentivize developers, requiring them to allocate 30% of their projects for social housing.
“My Home” Program
As the “My Home 2” initiative progresses, discussions around a potential new “My Home” program are ongoing, pending the availability of necessary funds. Since the application process began less than five months ago, housing loans exceeding €734 million have been approved, with an absorption rate of 38.18%.
Government officials monitoring the program’s progress noted that approval rates for the current iteration are significantly higher than those of “My Home 1.” In the first 100 days of the new program, there were 5,387 approvals, marking a 59% increase compared to the same period of “My Home 1,” which had 3,381 beneficiaries.
Moreover, the broadened age criteria have allowed more middle-aged applicants to participate in “My Home 2,” unlike “My Home 1,” which targeted individuals up to 39 years old. Over 41% of current enrollees are aged 40-50, with the majority of loan approvals concentrated in Attica and Central Macedonia.
