They have been declared as void by the Council of State in Greece the subjective values of real estate properties for the year 2018 in 12 regions:

  • Area of Plaka in Athens
  • Zones A’, B’, C’, D’ and F’ of the Municipality of Filothei-Psychico
  • Zone A’ in Ekali
  • Zone of Lilea of the Municipality of Delphi
  • Zone A’ of Agia Barbara
  • Zone A’ of Aetofolia of the Municipality of Tinos

The said decisions shall not have a retroactive effect, therefore, their outcome shall be in effect as of the day of their publication (and not as of the day of the Ministerial Decree’s validation), in order to safeguard the public interest and avoid the disturbance caused in terms of tax income regarding the State itself and Municipalities!

In particular and according to decisions under nr. 1865-1870, 1872-1876 and 1879/2019 the Council of State:

  • The establishment of the value of the real estate properties as per the Zone system has been rendered illegal, the way it was conducted by the Ministry of Finance in the year 2018, exactly because that establishment was conducted improperly,
  • The Decree under nr. 1113/12.6.2018 as issued by the Deputy Minister of Finance has been declared void, regarding that part setting the initial values of the subjective estimation of real estate properties in 12 zones/ regions, according to the procedure of article 46 of law 4509/ 2017
  • It has been decided that the establishment of initial values has to be conducted by setting a common ground for all regions integrated in this system of subjective establishment, and in particular in a way and manner which should be transparent, certain, susceptible to a scientific method of approach, in a way that the competent State bodies shall be introducing the same criterion of a consultative and decisive judgement, which in it turn shall be leading to references of proper estimation of the real estate properties’ tax value
  • It has been decided that during the procedure of setting initial values it is possible to vest with the mandate of collection, processing and evaluation of market data to natural persons or legal entities under private law, on condition that they do have sufficient skills
  • It has been decided that the Greek State has omitted creating a data base by using comparative sales, and that it did not proceed to the collection of real estate market data, and that it did proceed to the designation of evaluators of data collection without previously having predicted and operated sufficient procedural guarantees in a way that the completeness and accuracy of the data to be safeguarded)
  • It has been decided that the Greek State as such has not also taken into consideration the proper way to estimate cost in order to establish the relevant evaluating methodology, even though such approach has been considered the appropriate one in terms of some regions due to the lack of supply and demand in this specific market, which ultimately leads to the lack of sufficient data regarding leases and/ or sales and purchases
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