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The Ministry of Finance has not yet reached the final proposal that it will send to Brussels in relation to the reduced tax rate of 5% when buying or building a main residence. Although the ministry estimated that it would forward the final proposal to the Commission this week, the non-convergence of views between the technocrats of the Ministry of Finance and ETEK, who are “building” the argument to be presented to the European Commission (EU), seems delays the process.
A number of proposals are being tabled at the deliberations table to prevent Brussels from imposing a financial sanction, due to the infringement procedure it initiated against the Republic last summer. The parties, as well as the majority of the relevant professional bodies, propose the return to the tax regime of 2011, according to which 5% VAT will be imposed on the first 200 square meters (sq.m.) of the house, meaning that it has a total area of up to 275 sq.m
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In the EU the proposal for VAT on real estate React to the increase of VAT In fact, the ministry had repeatedly said that this proposal would end up in the EU. At the last meeting of the technocrats and ETEK, a proposal was made by the government to impose 5% VAT on 190 sq.m. of the property, meaning that it will have a total area of up to 230 sq.m. Position disagreed with ETEK, which allegedly proposes to introduce a separate category and limit for detached houses and apartments. For the house, it requests the imposition of 5% VAT on 200 sq.m., with a buildable area of up to 275 sq.m. For the apartments, he proposes the imposition of 5% VAT on 140 sq.m., with a total area of up to 200 sq.m.
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