Filenews 12 February 2021 - by Eleftheria Paizanou
A step towards the financial support of refugees who own real estate in the occupied territories was taken yesterday by the Parliament, unanimously approving a proposal of a law of the Deputies Kostis Efstathiou of the EDEC and Kyriakou Hatzigiannis of the DISY for a cut of 0.40% from each purchase of property, in support of the Equal Burden Allocation Body.
This measure, as the rapporteurs argued, could prevent owners of occupied land from resorting to the so-called Compensation Committee and selling off their property for a menial sum.
Once the proposed law adopted is signed by the President of the Republic, property owners in the occupied areas will be financially supported through sales of real estate in the free areas. Specifically, for each sale of a property, the seller will pay a contribution of 0.40% on the value of any transaction and the amount will end up with the Equal Burden Allocation Body, which, by regulations, will determine the criteria for the financial support of the beneficiaries.
For example, from a sale of €1m of real estate, in the free areas, they will pay €4,000 to the Agency. The fee of 0.40% will also be collected in the event of a transfer of shares of any company that owns immovable property and the transfer will result in the acquisition of control of the company or the ownership or exploitation of the immovable property by the purchaser of the shares.
It is worth noting that the financial assistance that will be granted to the owners of immovable property in the occupied territories will be used to support the studies of the children of the beneficiaries but also for other purposes. The proposal had been tabled in 2017 and it was then estimated that by imposing the fee it would result in the Agency amounting to €16 to €18 million. Annually. However, now, due to the coronavirus pandemic and declining sales, it is estimated that the Agency's revenues will be less.
Before the adoption of the proposed law, the plenary of the House rejected an amendment of the ACPL, by which the levy would be staggered and increased according to the value of the property sold. Despite unanimous support for the proposal from the parties, the government will examine in detail the legislation, given the reservations expressed in the House by representatives of the ministries of finance and interior. A competent source said that all possibilities are open, as the President of the Republic, before making his final decision, will take the legal advice of the Attorney General of the Republic. It is recalled that, when the proposal for a law was discussed in the parliamentary Committee on Refugees, a representative of the Ministry of Finance had argued that the proposal was unconstitutional. In fact, he said that the increase in the cost of transactions in the real estate sector is not appropriate, because tax policy should be defined as a whole and not piecemeal.
It also noted that due to adverse developments in the real estate sector, the imposition of additional tax burdens may further affect demand for real estate, with negative effects on the sector. A representative of the Ministry of the Interior also expressed concerns and reservations.
