Greece adopts new Local Government Code reshaping property taxes and fees

The Greek Parliament has approved a new Local Government Code that will overhaul the taxation of real‑estate. The existing Property Tax (ΤΑΠ) and the Electricity‑Occupied Space Tax are merged into a single Local Development Tax (ΤΤΑ) with a rate of 0.30‑0.70 ‰. Collection will begin on 1 January 2027 through electricity bills; if the tenant pays the tax, the amount is deducted from the rent unless the lease states otherwise.

The Cleanliness and Lighting Fee for vacant or non‑electrified properties will be reduced to one‑tenth of the normal charge, applied automatically once the power supplier (ΔΕΔΔΗΕ) notifies the municipality of the disconnection. The historic “right of uplift” is abolished.

Leases of private properties to municipalities or regional authorities may now last up to 12 years, with a possible further 12‑year extension subject to council approval and landlord consent. A late‑stage amendment permits municipalities to collect these fees by “other ways” besides electricity bills, such as dedicated online platforms or through the tax authority (ΑΑΔΕ), a change the property owners’ federation (ΠΟΜΙΔΑ) warns could increase bureaucracy and spark disputes.

The federation cautions that owners of occupied or rental units may face an extra payment step and, if the tax is charged to owners rather than tenants, could lead to legal actions that deter leasing and affect the supply of rental housing.