Despite the fact that since the beginning of the global economic crisis prices of property in Greece have dropped, the government continues to deduct taxes from so-called "objective" (appraised) value of the property of a year 2007, according to ee24.com citing ekathimerini.com. It turns out that the property in Greece is becoming cheaper but taxes weren't reduced.
In many regions of Greece, the market value of property is by 30% or even by 50% lower than "objective" value. As a result, owners are forced to pay higher taxes. In Athens' area of Palaio Psychiko, apartments are for sale for around €3,000 per square meter, while the government continues to calculate the tax on the basis of €7,250 per square meter.
Half a year ago property owners in prestigious areas of Greece began to notice that the real and the estimated values of their posessions do not match. It started with the suburbs of Athens and spread throughout the country.
According to the Bank of Greece, now housing prices are by 40% lower than in the end of 2008. Lefteris Potamianos, vice president of Athens-Attica Estate Agents, believes that the adjustment of "objective" value is the only measure that is now able to stimulate the market.