Greece adopts new Local Government Code overhauling elections and municipal taxes

The Greek Ministry of Interior, led by Minister Theodoros Livanios, presented a 774‑article Local Government Code slated for parliamentary vote on 23‑24 June. The reform eliminates the second round in mayoral and regional elections and introduces an alternative‑vote system in which voters can list a second preference; if no list reaches a 42 % threshold, the second‑choice votes of the remaining parties are counted for the top two lists. About 400 special electoral districts will be equipped for electronic voting.

The code also revamps municipal finance. The former Property Tax on Electrified Spaces (ΦΗΧ) and Real‑Estate Tax (ΤΑΠ) are abolished and replaced by a Local Development Tax (ΤΤΑ) set by each municipality, with rates from 0.30 ‰ to 0.70 ‰ based on property size, zone and value. Most owners are expected to see lower charges, while high‑value or newly built properties may face higher fees. Municipalities may also grant birth allowances of up to €3,000 per child. Additional measures include permanent staffing for kindergarten and preschool centres via an ASEP electronic roster, creation of over 9,000 organic municipal positions, a unified digital payment portal for citizen obligations, and extended debt‑payment installments up to 48 months. Water and sewage utilities receive up to €230 million in state support and new borrowing options.