The Greek government is proposing a new measure that would address the nation’s housing crisis by taxing property owners who refuse to put their vacant homes up for rent or sale.
Tovima.com reports the measure would apply a new tax on property owners who refuse to participate in renovation or upgrade programs that would make the properties available for rent or sale. The tax rate has not been decided upon, nor has a timeline been set regarding when this might go into effect.
The new measure is inspired by similar laws in France, where vacant homes are taxed at 17% of their estimated rental value in the first year and up to 34% from the second year onward, and in Ireland, where the tax on vacant properties can rise up to five times the standard property tax.
Among the European Union nations, Greece has the highest percentage of its population burdened by excessive housing costs. The costs of rental housing surged by over 50% in the last five years while prospective homebuyers outnumber sellers by at least two to one. The lack of housing is especially acute in the capital city of Athens, which recently enacted a one-year ban on registering new apartments as short-term rentals.
