Reset of the Property Fee Certificate (TAP) to the property transfer contracts

20 Nov 2017, Legal, by Athina Ledaki, Lawyer/Accredited Mediator (CEDR)

 

The property fee is applied to all property types other than those belonging to the par.7 of the Law 2130 article 24 (communal and construction sites, public institutions, etc.). This burdens the owner on the 1st of January of each year of the property and in the case of usufruct or possession the usufructuary or the possessor.

The property fee is calculated based on the following type:

Property’s size x zone value x age factor x TAP coefficient

It is being collected through the electric power (DEI) bill for properties that are electrified.

According to article 59 of Law 4483/2017 (FEK A’ 107/31.7.2017) is valid again par.18 of article 24 of Law 2130/1993 about attaching the TAP certificate to the property transfer contracts, which was abolished by the Law 4262/2014. More specifically in the par.1 of article 59 of this Law, are defined the following:

Article 59 –Certificate of non-debit TAP

  1. In the case of the ownership transfer of any kind of property for any reason and before the signing of the contract, the sellers are obliged to present to the notary a certificate from the local authorities of the Prefecture where the property is located, from which results that there is not due any property fee, otherwise the transfer contract is canceled and the notary who drew this up is under investigation.
  2. The par.3 of article 44 of Law 4262/2014 (A’114) is abolished.

The relevant obligation is effective since 31-07-2017. The rights to properties are not subjected to the TAP certificate, for which there is a prohibition of any use (burden for road construction, road expropriation or for reasons of protecting the environment, etc.) which is imposed by the Government.

As the Chamber of Notaries in Athens mentions in its relevant circular,  since the provision of the article 59 of Law 4483/2017 is exactly the same to the provision of article 24 §18 of Law 2130/1993 (which was abolished by the article 44 §3 of the Law 4262/2014, that was subsequently abolished by the article 59 §2 of Law 4483/2017) and since the property fee (TAP) is enforced to the properties that are mentioned in article 24 of Law 2130/1993 and do not include the outside of city boundaries and outside city limits plots without any buildings, as accepted by the Law 2130/1193, in the case of transfer of plot without any buildings, TAP certificate is not  required from the local authorities of the Prefecture. The required supporting documents are differentiated per municipality depending on the available information to each municipal authority and on the degree, that the authority can calculate correctly and sufficiently the relevant fee. Indicatively the seller will generally have to present a copy of the deed, engineer’s certificate according to L.4178/2013, topographical plan, property tax certificate (ENFIA), building permit, latter and paid electric power bill (DEI) of the transferring property. In case of a power disconnection in the property (or there was a power disconnection and reconnection within the last five years), the interested party should present certificate from electric power company (DEI) about the date of the disconnection (or and the reconnection). If the property is not electrified the last five years either because it is unfinished or because is empty (it is not being used in any way), the owner should prove the state of the property by presenting the E2 documents from the tax authorities.

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