News › Weekly Alert Article

Revaluation Coefficients Set For Immovable Property

Greece
3 Jan 2013
As from 1992, Greek and foreign enterprises maintaining double entry books are obliged to readjust the book value of their immovable property every four years.

The previous revaluation was performed in 2008 while the 2012 revaluation was to be booked no later than 31 December 2012. Taxand Greece explains the updated revaluation coefficients for immovable property.

The revaluation is effected by multiplying the book values of the properties with revaluation coefficients set in a ministerial decision and which vary depending on the property (ie land and/or building) and the year of its acquisition. The revaluation coefficients for the 2012 revaluation were set by Ministerial Decision Pol 1223/2012, as follows:

 

Year of Acquisition Land Coefficient Building Coefficient
Until year 2007 1,40 1,35
From 01/01/08 to 31/12/08 1,35 1,30
From 01/01/09 to 31/12/09 1,00 1,00
From 01/01/10 to 31/12/10 1,00 1,00
From 01/01/11 to 31/12/11 1,00 1,00

From a tax perspective, the balance of the revaluation surplus, which may be reduced by the amount of tax losses, is currently subject to income tax at a 2% rate as regards land and 8% as regards buildings, provided that it exceeds the amount of EUR 880. Especially, as regards hotel enterprises, half of the surplus value corresponding to land is exempt from tax. The deadline for filing a tax return to report the revaluation amount is 31 January 2013, whereas the tax due is payable in 4 installments, at 6 month intervals. The first installment is payable upon filing of the revaluation tax return.

Discover more: Revaluation coefficients have been set for the revaluation of immovable property


Your Taxand contact for further queries is:
Marina Allamani
T. +30 210 69 67 000
E. m.allamani@zeya.com

Taxand's Take

All Greek taxpayers should be aware of the 31 January 2013 deadline for filing their tax returns reporting the revaluation amount. Failure to comply may result in a fine. As is the standard course, the next revaluation will be performed in 2016.

Taxand's Take Author

Marina S. Allamani