ATHENS – Greek landlords who can’t collect rent from people who can’t pay will still be taxed on what they were supposed to get.
Under a new scheme from the cash-desperate coalition government led by the Radical Left SYRIZA party, the unpaid rents will be taxed at 11-33 percent.
That news came in a circular issued by the General Secretary for Public Revenues, Katerina Savvaidou, and runs contrary to Prime Minister Alexis Tsipras’ pledge to reverse big pay cuts, tax hikes, slashed pensions and worker firings as part of his anti-austerity promises he has largely broken to satisfy international lenders he said he wouldn’t speak with but has.
The circular notes that taxable incomes from real estate utilization are those which “are supposed to be obtained by taxpayers or personal enterprises regardless of their collection, provided that the right of collection has been obtained and provided that the owner does not make any use of the property and does not offer any other services to the tenant (such as cleaning, insurance etc), so that this is characterized in its entirety as income from business activity.”
Source: The National Herald