Δευτέρα, 10/02/2025

With Decision 1220/2024, the Council of State (CoS) upheld the legality of imposing the Special Real Estate Tax (SRET) on companies based in non-EU third countries that are not covered by an administrative assistance agreement between Greece and their country of establishment.

The case involved a Dutch company owning real estate in Greece, whose sole shareholder was a Lebanese company. As a result, a 15% SRET was imposed on the objective tax value of its properties, based on Article 15 of Law 3091/2002, as amended by Law 3842/2010. The company argued that it had disclosed the ultimate beneficial owners (UBOs) and claimed that the requirement for an administrative assistance agreement violates the free movement of capital.

The Council of State ruled that the existence of an administrative assistance agreement is an essential prerequisite for SRET exemption, as it ensures the ability of the Greek tax authorities to verify the declared information.

Furthermore, the absence of such an agreement between Greece and Lebanon prevented data verification, making the company's exemption request ineligible. Thus, the Council of State confirmed the legality of the SRET, reinforcing tax control mechanisms and contributing to the fight against tax evasion through offshore companies.

Compliance Considerations & Advisory Support

Given this recent ruling, companies owning real estate in Greece should exercise heightened diligence in documenting their SRET exemption eligibility. Ecovis OneTax provides specialized tax advisory services, assisting businesses in ensuring compliance and avoiding unnecessary tax liabilities.