With the housing crisis putting intense pressure on households and thousands of properties remaining closed. The Minister of National Economy and Finance of Greece, Kyriakos Pierrakakis, stressed at the 4th Real Estate Conference of Capital.gr and Forbes Greece that the issue will be discussed at the informal Eurogroup in Nicosia for the exchange of good practices.
The Eurogroup will present three model housing policy countries: Spain, Croatia and Ireland. These countries are implementing multi-layered strategies that combine taxes on closed properties, social housing, subsidies and short-term rental restriction measures.
Spain
The government is limiting rent increases in areas of high demand, such as Catalonia, while large real estate companies are required to make housing available at affordable prices. There are tax disincentives for properties that remain empty, with surcharges in the municipal property tax (IBI) of up to 150%. At the same time, the Golden Visa for real estate has been abolished and is being invested in social housing through state-private partnerships.
Croatia
The main measure is the mandatory annual tax for vacant houses and secondary residences, with prices ranging from 0.60 to 8 euros per sq.m. At the same time, young families are supported through mortgage subsidies and abandoned properties in small towns are being renovated, while restrictions are being applied to Airbnb-type short-term rentals.
Ireland
The country uses taxation as a lever of pressure to develop unused housing and land. The tax on vacant houses is equal to 7 times the basic local tax, while the tax on residential land amounts to 3% of the market value of plots. The state finances mass construction of social and affordable housing through the Housing for All plan, while maintaining a 2% cap on increases for existing tenants.
Capital.gr
