Taxpayers have the option to reduce income tax them, since they bear the cost of energy, functional and aesthetic modernization of their real estate their. In particular, 40% of these costs are distributed equally over four years and reduce the taxpayer’s income tax for each tax year accordingly. The maximum total spending limit is set at sixteen thousand (16,000) euros. Thus, the maximum total amount of the tax reduction is 6400 euros and is spread over 4 years.

Costs relate to the receipt of services (not the purchase of goods) associated with the energy, functional and aesthetic upgrades of buildings (“eligible costs”). They apply to all buildings, regardless of their use, unless they have already joined or will join a building retrofit program or other grant programs or activities.

An “eligible expense” is recognized as a tax deduction if:

A) They are carried out from 01/01/2020 to 12/31/2024 in properties located in Greece and the related services are provided by companies that have a tax residence in Greece or have a permanent establishment in Greece.

b) They have not been deducted as an expense from gross business income.

A tax credit is available to a taxpayer who has full ownership or use of a building that incurs “eligible costs” for the relevant tax year related to its energy, functional and aesthetic upgrades.

Beneficiaries of the tax credit are also natural persons who are entitled to freehold property, provided that such persons use the property either as a primary or secondary residence, or as a headquarters or branch office for the conduct of their business.

The maximum total amount of the tax reduction is 6,400 euros and is spread over 4 years.

In the above cases, the beneficiary of the reduction is only the person in whose name the relevant document was issued.

Service costs recognized to achieve the above are:

• Energy, for example. installation of thermal insulation, replacement of frames, installation or modernization of the heating/cooling system, installation of devices for automatic control of the heating/cooling system, etc.

• Functional-aesthetic, ie. plumbing installation/replacement, electrical installation, roof maintenance/repair, interior and exterior masonry/painting repair, installation of fixed or mobile shading systems, elevator upgrades or installations, home electric vehicle charging points installation, floor replacements or repairs.

A necessary condition for reducing the tax on the amount of expenses is their confirmation by title documents (invoice or retail goods for the provision of services), which must clearly indicate the type and cost of the service provided, because. the tax reduction is calculated, the data (surname, VAT number) of the person, as well as data on the property (ATAK), unless it is a joint property, for which only the address of the property is sufficient. In addition, payment of expenses, regardless of their amount, must be made using electronic means of payment (such as, for example, money transfer through electronic banking, cards, “electronic wallet”, etc.) or through a payment service provider. Part of the cost of receiving services that is not paid by the above methods is not recognized as a deduction.

Ms. Jeni Panu is the responsible partner of the tax department of Accounting Solutions SA (www.asnetwork.gr).