The ministerial decision was published in the Official Gazette, which will activate the tax-reduction for the costs of energy upgrading of properties.
The tax deduction will cover the costs incurred or will be incurred during the period from 1/1/2020 to 31/12/2022 by the house owners to pay service fees, related to the energy, functional and aesthetic upgrading of the their properties. The discount amounts to 40% of expenses, with a maximum (expenditure) limit of 16,000 euros and is spread over four years.
This practically means that the owners have the possibility to save up to 1,600 euros per year from the tax attributable to them. That is, taxpayers for works of the order of 16,000 euros will have a discount of 40%, i.e. 6,400 euros, an amount which will be equally distributed over four years. For example if the expenditure was incurred in 2020, 40% of it will be spread equally over the years 2021, 2022, 2023 and 2024. The amount of the expenditure corresponding to each of these following years, i.e. 1/4 of 40% of the expenditure , will reduce the personal income tax assessed to the taxable owner in that year.
For the calculation of the discount, only the costs for the works are taken into account, and not the costs for the supply of materials. Necessary conditions for the discount to apply are the proof of expenses with legal documents and their payment by electronic means of payment (debit, credit or prepaid cards, electronic banking services) or through a payment service provider. Eligible expenses must not have been deducted as an expense from gross business income. In addition, the measure covers buildings which have not already been or will not be included in a building upgrade program or other programs or grant actions.
According to the MOU, signed by the Minister of Finance Mr. Christos Staikouras, the Minister of Environment and Energy Mr. Kostas Skrekas, the Deputy Minister of Finance Mr. Apostolos Vesyropoulos and the Governor of the Independent Public Revenue Authority (AADE) Mr. Giorgos Pitsilis:
– Beneficiaries of the deduction from the income tax are the natural persons who have the right of full ownership or usufruct in the building in which the eligible costs of energy, functional and aesthetic upgrading are carried out. Also, natural persons who have the right of small ownership over the property are also beneficiaries, provided that they use it either as a main or secondary residence, or as a headquarters or branch for the exercise of their business activity.
In the above cases, the beneficiary of the reduction is only the person in whose name the relevant document is issued.
If the expenses concern common areas of the building, the manager of the apartment building/property complex pays the expenses electronically and these are taken into account for the beneficiaries according to their co-ownership thousandths, based on a relevant certificate issued by the manager.
Eligible energy costs concern the receipt of services for the following:
– Installation of thermal insulation
– Replacement of frames, glazing and external protective sheets
– Installation or upgrade of a heating/cooling system, as well as the necessary infrastructure and elements, so that the building becomes fully functional
– Installation of devices to automatically control the operation of the heating/cooling system
– Installation of a system of self-production of electricity (with energy compensation), as well as systems of electric accumulators (batteries) when combined with photovoltaic systems
– Installation of a hot water production system using Renewable Energy Sources (RES)
– Installation of a mechanical ventilation system with heat recovery
– Lighting upgrade of the common areas of the apartment building.
The eligible functional-aesthetic costs concern the receipt of services for the following:
– Installation/replacement of hydraulic installation
– Installation/replacement of electrical installation
– Roof maintenance/repair
– Repair of masonry/painting inside and outside buildings
– Installation of fixed or mobile shading systems
– Upgrade or installation of a lift
– Installation of domestic recharging points for electric vehicles
– Changing or repairing floors.
“The deduction from the personal income tax for energy, functional and aesthetic upgrading of buildings is a measure with multiple benefits for the environment and the economy. It provides households and professionals with a substantial incentive to contribute to the improvement of the country’s building infrastructure and their energy efficiency, while simultaneously improving their quality of life and increasing the value of their real estate. Also, the measure strengthens tax compliance and supports the construction and technical industries. With its implementation, the Government confirms that it is working steadily and consistently for the implementation of a balanced economic policy, with a particular emphasis on green development”, stated the Minister of Finance Mr. Christos Staikouras and the Deputy Minister of Finance Mr. Apostolos Vesyropoulos.
“The energy upgrade of the country’s building stock is one of the main axes for the transition to a sustainable production model with a low environmental footprint. Energy saving investments will substantially improve the standard of living and everyday life of citizens, by reducing energy costs and protecting the environment. In addition, they will contribute decisively to the development of the economy, especially the construction sector, with the creation of thousands of new jobs”, said the Minister of Environment and Energy Mr. Kostas Skrekas.