Greek Default Watch :: How to Calculate New Property Tax

Greece Default Watch. Everyone who owns property in Greece whether living in it or using it as a holiday home, is liable to the special property tax imposed by the Greek Parliament on September 27, 2011. The Special Property Duty (but everyone is calling it a property tax) is to be collected through the regular electricity bills issued by D.E.H. the state electricity company. The reason the government is not calling it a "tax" is there is a legal issue that could be challenged in the Supreme Court. Luxury property owners are already levied extra property tax, so a second one would not be constitutional, according to a number of lawyers.

This special property tax applies to the years 2011 and 2012. It will likely be extended to 2013 and 2014.

It is so difficult to find a comprehensive document in English, to explain when to pay and how the tax is calculated. I am pleased to report that BritsinCrete.Net website carries such a detailed document, thanks to Atsalakis and Partners, the accounting firm based in Chania, Crete.

The Greek government is doing its best to bridge the gap in a shortfall in revenue of more than 2 billion euros to avert a default on its loans. The Special Property Tax will raise about that amount.

While the Greek Government says it is a fair tax as it is spread throughout the various income levels, it should not be levied in this manner at all. It still hits the lower income groups. It is at least pleasing to know that property speculators with a number of properties are hit even harder.

If you are renting, beware: the owner may increase your rent to pass on this new tax to you.

Should Greece default on loans it will affect the banks most. Living in Crete we can't do without the banks for ATM transactions. How do we know the banks won't freeze our accounts or lower the daily limit on how much we can withdraw from an ATM. Is it time to put some money under the pillow?

We are still on Greece Default Watch. All the details of how the special property tax will affect you if you own property in Greece, can be found at