The long-awaited Joint Ministerial Decision of the Ministers of Finance and the Ministers of the Environment, extending until December 31, 2026 the validity of the discount, was published in the Government Gazette (Government Gazette). tax for energy, functional and aesthetic upgrade costs real estate.
The regulation, according to POMIDA, allows property owners ( to reduce their income tax, provided that the relevant operations and payments are done electronically and through Greek companies.
According to POMIDA, the provision of the relevant services is carried out by companies that have their tax residence or maintain a permanent establishment in Greece. This applies as long as these costs have not already been included or are not included in a building upgrade program or other grant programs or actions and are recognized for tax reduction.
The tax deduction applies to natural persons and is calculated based on the actual costs incurred to upgrade properties. These expenses reduce income tax equally distributed over five years, up to the corresponding tax for each year, with a maximum total expenditure limit of 16,000 euros.
The amount of expenses related to the purchase of goods cannot exceed one third (1/3) of the expenses for the provision of services, i.e. 25% of the total amount of the invoice. All payments must be made by electronic means or through a payment service provider, while the relevant operations must be carried out by companies with tax residence or permanent establishment in Greece.
POMIDA points out that the discount is only real for those who have a tax burden at least equal to the amount of the annual reduction, as there is no refund or set-off for the difference. In addition, the benefit is not transferred to subsequent years, nor to a spouse or common-law partner.
In cases of co-ownershipthe tax reduction and spending cap are calculated according to each co-owner’s ownership percentage. If the taxpayer has only a usufruct or small ownership, the limit is calculated based on the proportional value of the right to the property.
POMIDA emphasizes that, this is an important and fair extension of a measure that acts as an incentive for legal and quality renovationscontributing to energy savings, supporting construction activity and combating undeclared work.
Three highlights of POMIDA:
- We note that after our continuous requests, last year there was a significant increase in the discount rate for building upgrade costs as well as extension of the measure not only to the costs of receiving services (e.g. plumbers, electricians, etc.), but also in the costs of purchasing goods (ie materials, spare parts, etc.), up to 25% of the total. Our request here was and remains that the ratio between labor and material costs be set at 50 – 50%.
- This setup can be used by building owners and managers to retrofit their elevators with the above restrictionsand on the condition that the personal income tax assessed annually is so high as to be of financial interest to them.
- Finally, the significant difference from those in force in 2024 is that from 1.1.2025 expenses for heating systems using oil and natural gas are no longer eligiblewhich was known from the already valid national and community legislation limiting the use of fossil fuels, through their non-subsidy.