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Greece Introduces New Duty On Electricity

8 May 2013
A new tax law has been enacted containing the measures agreed upon with the Troika in order to secure the next loan installment. The new law introduced a new property tax called "Extraordinary Real Estate Special Duty". Taxand Greece discovers how the new Duty will affect taxpayers.

The new Duty operates in a similar way as the "Special Duty on buildings powered by electricity" that was imposed in 2011 and 2012.

In particular it is computed on the basis of the same formula as the Special Duty (ie total surface of the building multiplied by a co-efficient set in the law which varies depending on the zone value and by an age multiplier). The applicable coefficient for the calculation of the new Duty is reduced by 30% and 60% for larger non-residential properties. The amount of the duty is equal to the result of this formula reduced by 15%.

The assessment of the new Duty will be made upon registration of the buildings in the database of the electricity providers in June 2013 and will be paid to the Greek State through the utility bills in 5 equal installments from June 2013 to February 2014. With respect to leased buildings, the amount to be paid by the lease is automatically set off against the future monthly rental(s) due to the lessor.

The new Duty will be imposed on all buildings that are connected to the electricity system any time within the period from 1 May to 31 December 2013. Liable to the new Duty is the owner of the property or the holder of usufruct rights on 1 May 2013.

Your Taxand contact for further queries is:
Marina S. Allamani
T. +30 210 69 67 000

Taxand's Take

Taxpayers should review their electricity bills and verify whether the surface, age and zone value are accurately reported. Taxpayers are entitled until 15 May 2013 to apply to the competent municipalities for corrections, otherwise they are deemed to accept these data as accurate. The municipalities shall verify until 31 May 2013 that the zone value per location has been accurately reported to the Hellenic Distribution System Operator and notify the Operator for any errors.

Taxand's Take Author

Marina S. Allamani