Greek tax authorities are stepping up their efforts to curb tax evasion in property transactions, with a particular focus on cash deals and undeclared income.
The annual audit plan outlines 2,500 checks on property transfers, inheritances, and gifts, but authorities anticipate exceeding this number significantly.
The primary objective is to investigate suspicious cases, especially those involving large cash sums. In 2022, over 338,000 property transfers took place in Greece, with a total value exceeding €27 billion. Of these, 42,613 were fully paid in cash, while 41,741 involved partial cash payments.
New regulations now declare any contract involving cash payments, whether full or partial, as invalid and unregistrable.
Violators face hefty fines, ranging from €10,000 to €500,000. The most significant challenge lies in the thorough asset verification conducted by tax authorities.
In addition to cash transactions, a recent directive mandates a surge in inspections to ensure compliance with property tax regulations.
Tax offices and newly established Capital Taxation Centers will remotely review all property transactions from 2023. The focus is on ensuring that notaries, land registry officials, and cadastral office heads adhere to rules concerning the ENFIA (property tax) certificate.
The ENFIA certificate is crucial for confirming property tax compliance before any transfer. Notaries, land registry, and cadastral office officials have specific obligations regarding the ENFIA certificate.
By George Pappous