by admin Capital taxation has been constantly changing in recent years. This is a result of the high taxes that were instituted following the pressures of the ‘troika’ to increase revenues and meet fiscal targets. From 2019 onwards, the reverse process began, when the government suspended VAT on constructions, while it offered incentives for repairs, ensuring, as long as owners paid for the work electronically, a significant deduction from his/her income tax. According to the law, prospective buyers must be aware of the following:
1. A tax-free limit of 200,000 euros applies to those who purchase their first home. This limit amounts to 200,000 euros for singles, increases to 250,000 euros for married people and then increase by 25,000 euros for each of the first two children and by 30,000 euros for the third and each subsequent child.
2. For those who decide to buy a plot of land on which a first residence can then be built, an exemption from the tax is provided up to a value limit of 50,000 euros for unmarried people and up to 100,000 euros for married people. The limit increases by 10,000 euros for each of the first two children and by 15,000 euros for the third and each subsequent child of the beneficiary.
3. As of last October 2021, a tax-free limit of 800,000 euros applies to parental transfers for persons who fall under ‘category A’. This first category includes the taxpayer’s spouse or the person who has entered into a cohabitation agreement with the taxpayer, first-degree descendants, i.e. children from a legal marriage, children out of wedlock against the mother, children recognised voluntarily or judicially against the father, legalised by consanguineous marriage or judicially against both parents. Also in this category belong second-degree blood descendants (grandchildren) and first-degree blood ascendants (parents). For the part of the property that exceeds 800,000 euros, a tax rate of 10% is imposed.
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