The government is looking for ways to make use of empty houses and apartments to boost supply and pressure prices downward.
The Independent Authority for Public Revenue estimates that there are 600,000 vacant properties around the country.
The government views this as an urgent issue, with property prices rendering buying, or even renting, a home beyond the means of many young households.
Besides the housing shortage, government officials consider properties a prime field for tax dodging. According to them, Prime Minister Kyriakos Mitsotakis will announce measures to both address the housing shortage and to crack down on tax dodging in his keynote speech at the start of the Thessaloniki International Trade Fair on September 7.
Mitsotakis will address both the vacant properties and short-term rentals, along with a redesigned subsidy scheme targeting young households.
There is a property registry including property sizes, sales and renting prices, but the way it was designed does not make access easy for the public and many data cannot be cross-checked. Now, officials are talking about creating a platform, such as the ones existing in the US, where everyone can access a property’s history, its sales and leasing prices over the years. Such an easy-to-use platform would also help to fight tax evasion. “Reported rental income is up, but we believe there is more hidden tax evasion, which we could limit,” Finance Ministry officials said.
It is also unknown how many of the estimated 600,000 vacant properties are in habitable condition.
There is also no comprehensive data about all short-term rentals. Owners’ preference for them has kept the market off-limits for locals who want to rent, especially in areas where such rentals are prevalent. Also professionals, such as doctors and teachers, moving into such areas find it hard to rent houses or apartments.
Mitsotakis has already announced a second phase for My Home, a subsidy program for young households. The proposal will have the EU’s Recovery and Resilience Fund provide €1.7 billion of the €2 billion needed. The government would also like to expand the age limit for recipients to 50 from the current 40.
{YPKAT}EIRINI CHRYSOLORA{YPKAT}