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6. Appropriate Regulation
6.1 Fair Tax Regime
6.2 Professional Services
6.3 Capital Markets

6. Appropriate Regulation (Weak)

Goal – A comprehensive regulatory regime that is transparent, efficient, simple in its implementation and that leads to accurate reporting of property values and prudent protection from market risks

  

6.1 Fair Tax Regime (Strong)

Core Question: Do market participants feel the overall tax rate is fair and participate in formal transactions?

Greece’s top individual income tax rate is 42 percent, and its top corporate tax rate is 26 percent. Other taxes include a value-added tax and a real estate tax.

Transfer Tax (Weak)

6.1.1   What is the total property transfer tax including all duties and payments?

10% 

Source:
Eurofast  www.eurofast.eu/global/phocadownload/Taxand2015/greecetaxcard2015.pdf

Overall Tax (Very Weak)

6.1.2   What is the overall tax rate on entrepreneurs(as a percentage of profits)?

49.6%; Rank 66 out of 189, Trend ↓

Source:
Doing Business 2016 – Paying Taxes & Registering Property, World Bank
www.doingbusiness.orgs

6.1.3 Divestment (Strong)

Survey Question

SQ 24  What is the tax on profits for foreign investors when divesting property?

20% profits tax, 15% Capital Gains – Strong

Source:
Eurofast www.eurofast.eu/global/phocadownload/Taxand2015/greecetaxcard2015.pdf

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6.2 Professional Services (Weak)

Core Question:  Are the professional services necessary for efficient and transparent property markets available and appropriately regulated and supervised?

The participation of Greeks in unions and associations is limited, compared to other western-European countries.

6.2.1 Asset Valuers (Weak)

Survey Questions

SQ 25  Are property valuers licensed and/or certified by the government?

Yes – Weak, only 133 of the 1,100 Greek Association of Valuer members are certified.   

SQ 26   How effective are mechanisms in place to discipline valuers who engage in misconduct?

Unkown

Source:
www.tegova.org/en/p4b02d1e2e44f3

6.2.2 Brokers & Agents (Weak)

Survey Questions

SQ 27  Are real estate brokers and agents licensed and/or certified by the government?

No – Weak, however the Hellenic Association of Realtors has a Code of Ethics.

SQ 28  How effective are mechanisms in place to discipline brokers or agents who engage in misconduct?

Unknown

6.2.3 Mortgage Professionals (Strong)

Survey Questions

SQ 29  Are mortgage professionals licensed and/or certified by the government?

No – Strong, however most mortgages are covered by Central Bank Regulations.

SQ 30  How effective are mechanisms in place to discipline mortgage professionals who engage in misconduct?

Unknown

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6.3 Capital Markets (Weak)

Core Question: Are capital markets well-regulated and diversified enough to provide financial resources to private-sector entrepreneurs and innovators?

No – Weak, although the situation is improving with the approval of the government’s deal with European creditors.

Capital Flows (Weak)

6.3.1  How restricted is the flow of capital into and out of the country?

Rank 126 out of 140; Score 3.4 out of 7; Trend ↑

Source:
The Global Competitiveness Report 2015-2016, World Economic Forum
http://reports.weforum.org/global-competitiveness-report-2015-2016/

Security Exchanges (Very Weak)

6.3.2  Is the regulation of securities exchanges transparent, effective and free of influence from government and industry?

No – Very Weak, Ranking 116 out of 140; Score 3.5 out of 7; Trend ↓

Source:
The Global Competitiveness Report 2015-2016, World Economic Forum
http://www.weforum.org/issues/global-competitiveness

Securitization (Very Weak)

6.3.3   What is the depth of asset-backed securities, mortgage-backed securities, high-yield bonds and highly leveraged loans?

Weak – Ranking 43 out of 62

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