Property tax cuts would pay dividends, says think tank

Property tax cuts would pay dividends, says Greek think tank IOBE

A reduction in property taxes would result in a sharp rise in building activity, boosting the country's gross domestic product by 1.3 billion euros and creating 32,000 jobs, said think tank IOBE in a report.

Greece's construction sector has yet to recover from the country's economic crisis that pushed investments in the sector down to 9 billion euros in 2017 from 33.6 billion euros in 2007.

Cutting the Enfia tax for owners with properties in excess of 200,000 euros and a reduction in the VAT tax applicable on new homes would do the trick, said IOBE.

The boost to the country's economic output and the new jobs would come over a four year period, it added.

IOBE called on the government to look into lowering the 24 percent VAT tax slapped on new buildings (constructed as of 2016) to 13 percent to boost new investments. This tax is distorting the market, pushing buyers to older homes, it added.