Real Estate: MIDA's 'touch' is imminent

Greece is on the verge of launching its most extensive digital property inventory yet, with the new electronic platform, the Property Registry and Management (MIDA), set to go live. Developed by the Independent Authority for Public Revenue (AADE), MIDA is described as more than just a database; it represents the nation's first comprehensive electronic "x-ray" of properties across the country.

Each entry in MIDA will contain extensive details for every property. This includes its type (residential, land, commercial, etc.), surface area, location, floor, whether it is electrified, unfinished, vacant, rented, or provided free of charge. Crucially, the platform will assign a Property Identity Number (ATAK), which will be linked to the National Cadastral Code (KAEK). Taxpayers will be required to review their property information as it appears in MIDA and make any necessary corrections.

For the first time, property owners must declare the usage of their assets. This includes specifying if a property is owner-occupied (primary or secondary residence), self-used for business (offices, shops), provided rent-free to family members or friends (with tax implications for spaces exceeding 200 sq.m.), rented (long or short-term), or vacant. The registry is expected to reveal the true number of properties offered rent-free and uncover instances of tax evasion through undeclared income.

Furthermore, MIDA will flag vacant properties by cross-referencing declarations in the E2 tax form with electricity consumption data. Properties declared vacant but showing high electricity usage will be targeted by tax inspectors. The platform will also capture properties under financial leasing agreements, primarily commercial buildings acquired by businesses.

In a subsequent phase, tenants will be integrated into the platform to match rented properties with owners' declarations. Tax authorities anticipate uncovering "black" income from rental properties. The initiative is a significant step towards greater transparency and fiscal compliance in Greece's real estate sector.