kathimerini.gr
Greece Reduces Withholding Tax Rates for Property Transfers
Greece's Independent Authority of Public Revenue (IAPR) has lowered withholding tax rates for issuing certificates of tax compliance to jointly liable persons of legal entities with settled overdue debts, impacting property transfers; new regulations (Law 5222/2025, Article 216, and IAPR decisions A. 1115/2025 & A. 1118/2025) detail conditions based on participation percentage and debt settlement.
- How might these changes in withholding rates affect Greece's real estate market and broader economic activity in the long term?
- This reform significantly impacts individuals' ability to transfer property when associated with legal entities holding previously settled debts. The lowered withholding rates reduce financial burdens and streamline property transactions, potentially stimulating the real estate market. Future impact assessment will reveal the full extent of these changes on Greece's economy and property market.
- What conditions must be met for jointly liable individuals to benefit from the reduced or zero withholding rates on certificates of tax compliance?
- These changes specifically target jointly liable individuals of legal entities with legally settled overdue debts seeking certificates of tax compliance for property transactions. The regulations differentiate between participation percentages, applying zero withholding for participation up to 5% and reduced withholding (7%) for higher percentages, compared to previous rates of 70% or 50%.
- What immediate impact do the reduced withholding rates have on individuals seeking certificates of tax compliance for property transfers in Greece?
- Greece's Independent Authority of Public Revenue (IAPR) has reduced withholding rates for issuing certificates of tax compliance to jointly liable individuals of legal entities with settled overdue debts. New regulations, following the passage of Law 5222/2025, Article 216, and implemented via IAPR Director George Pitsili's decisions (A. 1115/2025 and A. 1118/2025), modify withholding rates for property transfers or encumbrance establishment.
Cognitive Concepts
Framing Bias
The announcement is framed positively, emphasizing the reduction in retention rates as a benefit. The headline (if one existed) would likely highlight this positive aspect. This framing might downplay any potential negative consequences of the changes.
Language Bias
The language used is mostly neutral and descriptive. Terms like "reduced retention" and "legal settlement" are relatively unbiased. However, the overall positive framing could be considered slightly biased.
Bias by Omission
The provided text focuses on the new regulations and doesn't offer other perspectives or counterarguments. It omits potential criticisms or challenges to the new rules. This omission might limit a reader's understanding of the full impact and potential controversies surrounding the changes.
False Dichotomy
The text presents a clear dichotomy: either the participation percentage is below 5% (resulting in zero retention) or above (resulting in 7% retention). It doesn't explore intermediate scenarios or the potential for nuances in applying these thresholds.
Sustainable Development Goals
The new regulations aim to reduce the financial burden on guarantors of legal entities with settled tax debts, particularly impacting those with smaller ownership stakes. This aligns with SDG 10 by promoting more equitable access to financial resources and reducing disparities.