Scrutinizing realty purchases
Tax administration will cross-check real estate transactions that were conducted in cash
Authority for Public Revenue (AADE) is tracing the money trail for thousands of properties that were either bought in full with cash or part of the price was paid in cash. At the same time, the target is 2,500 real estate cases with a year-end statute of limitations.
The soaring of realty transfers led the tax administration to create two new special directorates of capital (KEFOK) that will operate in Athens and Thessaloniki. The first, in the capital, will begin operating on April 22, while that of Thessaloniki will do so in May.
The tax administration's moves are aimed at automating processes so that transfers are completed faster, the cases where tax evasion is suspected are scrutinized, and taxpayers and businesses are better served.
First up are real estate sales, mainly those made with cash, parental concessions, donations, those exempt from ENFIA and the special real estate tax, as well as notaries, who will be checked for the correct application of the legislation on real estate transfers.
According to AADE data, since the launch of the myPROPERTY platform in March 2021, almost one in four transfers has been made in cash. Specifically, 42,613 property transfer declarations have been registered, the price of which was paid exclusively in cash and amounts to 462.49 million euros.
In addition, 41,741 property transfer declarations have been identified, the price of which was partially paid in cash and totaled €2.98 billion (the amount is the total for these declarations, because the amount paid in cash is not separately recorded).
With the special cross-checks they will launch, the two special directorates will investigate whether the money with which houses and plots of land were bought with cash is declared in the tax returns of the buyers, or if this concerned money laundering, or is a product of tax evasion.
Tax officers will proceed with the opening of bank accounts, while checking the income earned from salaries, business activity, rents, sales of real estate and other assets, parental concessions and money donations.