Greek Tax Authorities to Scrutinize 40,000 Suspicious Real Estate Transactions.

Primarily, this concerns transactions conducted in cash.

What happened? The Greek Tax Administration is commencing audits to ascertain the origin of €462 million spent on the acquisition of over 40,000 real estate properties in cash.

Details: From the launch of the online application myProperty in March 2021 until the end of August 2023, tens of thousands of property purchases and sales, involving residential, land, and commercial properties, were identified as being executed in cash.

In the event of any money laundering indications, these transactions will be referred to competent authorities combating money laundering from criminal activities. The audits will encompass both buyers and property sellers. Although the purchases were exclusively made in cash, bank accounts, credit card transactions, as well as travel and other expenditures will also be scrutinized.

If any discrepancies are detected, taxpayers will be required to provide explanations and substantiate the source of funds. Otherwise, property owners will be asked to pay a tax at a rate of 33% on the unjustified amounts.

Context: According to Greece's existing legislation, asset increments remain untaxed until the taxpayer can prove their actual source and lawful taxation or exemption. In all other cases, any increase in assets stemming from illegal, unjustified, or unknown sources is considered income from entrepreneurial activity and is subject to a 33% tax.