Risk of blackouts in real estate transfers

The “electronic building ID” threatens sales and parental benefits. The possibility of extending the measure is open. Exclusively electronic real estate sales from June 29, 2021

The “electronic building identity” threatens to put “ice” in the real estate transfers, which have taken over after the announcement of the new objective values. From July 1, no transfer of property will be allowed unless the “electronic building ID” has been issued previously. The market declares itself unprepared to implement the new measure while from next Tuesday, June 29, all real estate purchases and sales will be made exclusively electronically through the myProperty platform of Independent Public Revenue Authority (AADE).

Panhellenic Federation of Property Owners (POMIDA) has already pointed out the problem that will be created with the issuance of the electronic building ID and requests an extension until January 1, 2022 in order not to “freeze” real estate transfers amid increased demand due to objective values. It is expected to be seen within the week if the Ministry of Environment gives the relevant extension.

With the electronic building ID, a complete electronic file is created for the first time for each property. According to Stratos Paradias, president of POMIDA, “this is a new and untested process in practice, which requires an incredible series of 11 documents, blueprints and certificates, with an unknown amount of remuneration for its pension and a top prerequisite, obviously by law even for simple apartments, the “structural vulnerability sheet or the technical report of static control, which accompanies the application for inclusion in law 4178/2013 or law 4495/2017, or the static adequacy study, if required, in accordance with article 9». For this reason the representatives of the property owners ask:

– To allow the parallel validity of the engineer certificate until 31.12.2021, so as not to paralyze the real estate market and make it impossible for citizens to enter into legal transactions with the applicable objective values.

– To remove the static adequacy study from the conditions for issuing a “Divided Property” identity, ie individual apartments, etc.

– To enable the regulation of arbitrary category 5 through exclusively the submission of a building identity, within the period of validity of the law, with the legal surcharges.

Undeclared surfaces

Electronic building ID is not the only problem in real estate transfers. According to Stratos Paradias, the fact that the real estate area declaration platform of  Central Union of Greek Municipalities (KEDE) has not been reopened, in order for the citizens to correct the surface of their real estate in order to get the “certificate of non-debt” (TAP) means that many “will face robbery” fines and surcharges of up to 200% on the fees due, which will practically prevent any transfer until the re-opening of the platform”. For this reason, POMIDA requests the immediate reopening of the KEDE platform, “so that those interested can use the only means at their disposal for their fairer taxation.”

Electronic transfers

However, from Tuesday, June 29, all real estate transactions will be made electronically through the myProperty platform of the Independent Public Revenue Authority.

Notaries, after an increase of up to 250% in the fair values ​​of real estate in 7,635 areas – zones, estimate that there will be a sharp increase in traffic from taxpayers who will rush to acquire or write real estate to their children by the end of the year to avoid the burdens of new objective values.

Through this application, each notary will fill in an electronic form not only the transfer tax return but also the calculation sheets of the value of the transferred real estate. The completion of the data of the transferred real estate and the calculation sheets of their taxable value after being completed by the notary will allow the temporary storage of the declaration and its sending to the accounts of the TAXISnet counterparties in order to validate it, through the same application. If the declaration is validated by both the seller or sellers and the buyer, then it will be permanently submitted to the TAXISnet system from which it will be cleared automatically.

With the liquidation of the declaration, the tax determination deed and the Debt ID will be issued, which will be notified to the buyer’s account in TAXISnet, in order for him to proceed with the repayment of the confirmed amount. Payment of the tax must be made by credit or debit card or via e-banking. Once the buyer has completed the payment of the tax, he will send the relevant proof document electronically to the notary, who will then proceed to the preparation of the transfer contract.

In summary, the process of submitting the real estate transfer tax return electronically includes the following 9 steps:

  1. The notary draws up the statement on behalf of the buyer and seller through the myProperty application.
  2. The declaration is sent, through the application, to the accounts of the buyer and seller in the TAXISnet system.
  3. The buyer and the seller accept the statement.
  4. The return is submitted automatically and the tax is confirmed, if any.
  5. The notary is automatically informed of the submission of the declaration.
  6. The buyer pays the tax digitally (by card or web banking)
  7. TAXIS is informed about the payment of the tax.
  8. Proof of payment is posted on myProperty for notary and buyer.
  9. The notary posts the contract on myProperty.