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Immovable property and deductible expenses
Taxand Greece provides a brief overview of the tax treatment of income from immovable property and tax deductible expenses.
Expenses are recognised as tax deductible on the basis of the generally applicable requirements of the new Income Tax Code on business related expenses.
Particularly in relation to tax deductible depreciation, the annual depreciation rate applicable to buildings (including inter alia constructions, warehouses and installations) is 4%. Such rate applies for deprecations performed from 1 January 2014 irrespective of the year of acquisition of the respective asset.
The same rate applies for capitalised expenses related to the acquisition of real property (e.g. real estate transfer tax, notarial fees) to the extent that they have been realised from 1 January 2015.
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Businesses and individuals acting in the course of their business, who selfuse their properties for their business activities are entitled to deduct deemed expenses of an equal amount to the deemed gross income generated from the relevant property. Therefore the income tax impact from the self-use of property is effectively neutralised.