Research on residential property taxation and its impact on the real estate market in Greece

The purpose of this research is to identify the differences between the ‘objective’ (tax) values and the current true market values of residential real estate in Greece. For that purpose research is made on the tax values used by tax authorities and the manner of their definition. In the first part of this paper an updated review of all taxes currently levied on residential property in Greece on the transfer (as a property transfer tax) and on the possession of residential properties (as Periodic Annual Taxes) is given. Then the calculation of the ‘tax values’, by the objective mass valuation system of the Greek tax authorities is presented and its variations are explained. In order to investigate the true market values and compare those with the tax values a case study is carried out. The Greater Athens Municipality is chosen because of its size, market importance and diversity. A specific methodology is followed to establish solid criteria for the sample selection, and then the results are compa...