Buy now to avoid the new property taxes!
West Crete Journal, August 2005

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- we've withdrawn a few properties where we felt the sellers were asking unreasonable prices!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!