14 May 2025 - Ex officio submission to the Finance Committee
The amendment to the legislation regarding the social relief measure granting a reduced VAT rate for the first residence was carried out with the aim of limiting the arbitrariness and abusive exploitation of the measure by non-beneficiaries, which we all saw take on scandalous proportions during the period of the "Golden Passports".
However, the said amendment, as voted, provides for an extremely extensive transitional period, during which time the possibility of continuing the exploitation of the previous legal framework is kept open. That is, under certain conditions, any property can be subject to the reduced rate of 5%, regardless of value or size, for the first 200 square meters.
At Volt, we believe that the long duration of the transitional period is unreasonably excessive, as it deprives the state of significant tax revenues and allows for the possibility of abusive application of the measure.
In order to determine the real effects of the legislation, Volt MP Alexandra Attalidou proceeded to submit an ex officio issue for discussion by the Parliamentary Committee on Finance and Budget on the subject of “The application of the reduced VAT rate on real estate sales from the amendment of the Value Added Tax (Amending) Law of 2023 (L. 42(I)/2023), until the day of examination of the ex officio issue”.
The Executive Branch is expected to inform the competent Committee during the discussion of the matter about:
The number of cases that benefited from the previous regime from 2023 to date.
The estimated loss of state revenue from the implementation of the measure in this period.
Transparency, tax justice and rational management of public revenues are key priorities for Volt. The aim of the ex officio registration is to assess the need for an immediate review of the transitional period and to take necessary initiatives that will ensure the rule of law while at the same time putting an end to irresponsibility and loss of tax revenue.