Virtually certain to be implemented from January 1 2006, the government
plans to introduce the following main taxes:
- VAT on new buildings.
- Uprating of the "assessed" values for land, old
and resale properties by 50-150%.
- Capital gains tax.
From the information so far given, it seems that a new building with a
permit issued from January 1, will cost 19% (VAT) more. We believe
that the new "assessed" values for land, old or resale properties are likely to
add a further 7% to purchase costs.
This means that clients looking to buy land, old or resale properties are
likely to pay an extra 7% from January ... and clients looking for a plot of land
to build a new house could be paying 26% more!
What are we doing about it?
We've been working hard since the government announcement to help our
clients buy in the coming Autumn season and avoid paying these new taxes:
- we've explained the situation to all our sellers, and asked them to
reduce their prices ... and 80% have responded favourably!
- we've withdrawn a few properties where we felt the sellers were asking
unreasonable prices!
- we've extracted our commission from the sale price, so that after
January it cannot cause clients to pay extra tax!
- we've recalculated all prices for the properties we have for sale, and
all of them are now substantially cheaper than before!
- we're monitoring the tax situation (likely to be tabled in parliament
in September) and will keep clients advised!
- West Crete Journal, August 2005 |
