Categorized | International

Greece Adds New Real Estate Tax in Effort to Reduce Deficit

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It is no secret that Greece’s economy continues to desperately struggle. Faced with an unprecedented deficit, the nation’s government has looked to the real estate market to cut back on its national debt. In a move that was more than welcomed by lenders and the European Commission, Greece has issued a new tax on real estate that would generate two billion euros. The move was applied immediately, and money generated from the new tax will be collected through the electricity bills of property owners.

Many analysts believe that the new property tax will serve only as a band-aid to the country’s woes, and that it will do little to improve the current situation within the embattled nation. The tax will cost property owners as much as half a euro to ten euros per square meter of construction. While it will only be in effect for two years, many real estate analysts are critical of the tax, as Greece’s real estate market continues to suffer itself.

Real Estate Analysts believe that the new tax may further cripple the housing market, and will lead to greater problems in the near future. As for whether or not that is true has yet to be seen, though the prospects for the Greek economy as a whole are not very strong.

Government officials in Greece insist that the new property tax on real estate is the quickest, and most efficient way for the Government to eliminate any further deficit in the latest budget. However, many experts fear that the move could cause lasting damages in the near future.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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