From now on, property owners will have to pay an environmental levy ranging from 8% to 15%, depending on the category of the building permit, to retain the bonuses of the New Building Code (ΝΟΚ). The fee will be calculated based on the value of the additional building volume incentivized by the ΝΟΚ.

This new measure is specified in a draft Presidential Decree prepared by the Ministry of Environment and Energy. It applies only to building permits that have been annulled by court decision or are under legal challenge. These will pay 8% of the value of the extra square meters. For permits that have applied for funding from the Recovery Fund or the NSRF, the fee rises to 15%.

Both categories will retain their ΝΟΚ bonuses (e.g., increased floor area ratio, lofts, rooftop spaces) upon payment of the levy. The collected funds will be deposited in the Deposits and Loans Fund and used for environmental compensation projects in affected neighborhoods. The property zone value as of December 11, 2024, will be used for calculating the levy.

The draft decree—building on an amendment passed 15 days ago in Parliament—clarifies for the first time the definition of “commencement of construction works” and the means of proving it.

This addresses previous legal ambiguity, which had been strongly criticized by the real estate market. The Ministry of Environment is now broadening eligibility for exemption from Council of State prohibitions, allowing owners to continue building under already issued permits without incurring additional costs.

Environment Minister Stavros Papastavrou and Deputy Minister Nikos Tagaras are urgently submitting the draft to the Council of State (CoS) for review, aiming to legally safeguard the regulation, which affects thousands of building permits impacted by a February 2025 decision by the CoS plenary. According to the Ministry, the amendment (Law 5187/2025), combined with the decree, forms a cohesive and secure legal framework ensuring transparency and predictability in the issuance of building permits.

“The goal is to restart construction activity without the uncertainty that prevailed recently, restoring citizens’ trust in the state,” Papastavrou recently said in Parliament, emphasizing the pursuit of legal certainty, citizen protection, and compliance with case law.

What the Regulation Provides

The Presidential Decree defines precisely what constitutes the “start of construction”, a crucial concept for many permits, to provide investment security. It legally supports timely construction activities by setting the following as valid indicators of commencement:

1. Excavation or Concrete Pouring

Excavation (for foundation or slope support) or concrete pouring in extensions (where excavation isn’t required) count as start of works. Proof includes:

• Notification to any public authority,
• Employer’s submission of a detailed declaration to EFKA (social security),
• Aerial photographs,
• Contracts with verified dates related to construction initiation.

2. Demolition Within Six Months

Demolishing existing buildings on the same plot also proves initiation if done within six months before December 11, 2024 (the reference date for legality per the CoS ruling).

3. Archaeological Works

Archaeological excavations conducted by the relevant authority by December 11, 2024, linked to an existing permit, also qualify as commencement of construction.

Environmental Offsets

The Ministry is allowing construction on properties affected by annulment or legal challenges by introducing the concept of “environmental equivalence”, offsetting the use of ΝΟΚ bonuses.

A Special Urban Environmental Upgrade Plan (ΕΣΠΙΑΠ) will be created for each municipality (or district in Athens and Thessaloniki), financed by the Green Fund or sponsored studies.

Owners or contractors must deposit the corresponding levy to their local authority (via the Deposits and Loans Fund), to fund “green interventions” directed by ΕΣΠΙΑΠ. These will benefit public space and quality of life, and will be applied in areas allowed higher density via ΝΟΚ incentives, enabling projects stalled by litigation or already funded by RRF/NSRF to proceed.

Green Measures Include:

• Priority acquisition of property for public space,
• Urban greenery development (including underground parking),
• Demolition of unauthorized or dangerous buildings,
• Streambed management works,
• Purchase and restoration of listed buildings/monuments by municipalities,
• Support for the EU mission of 100 climate-neutral cities.

Practical Impact and Cost

Per the recent ΝΟΚ amendment, permits under appeal or linked to funding tools may continue even if the structural frame is incomplete (e.g., only the basement constructed), subject to approval by:

• The Central Council of Urban Planning Disputes (KESYPOTHA) and
• The Central Council of Architecture (KESA),
  to assess the necessity based on technical, financial, and legal criteria.

Importantly, the environmental levy is not a fee aimed at revenue but rather a cost for legality, which increases construction expenses. While legal challenges are expected (some already filed with the European Court), this cost is likely to be passed on to buyers, raising property prices.

Example: What Will I Pay?

The environmental equivalence framework changes how extra square meters—like lofts or enclosed rooftop areas—are handled. Instead of a fine, owners share the cost of environmental compensation based on the area’s value and size.

The CoS ruling did not invalidate the entire ΝΟΚ but deemed specific provisions unconstitutional, such as:

• Excluding lofts and 35 sqm rooftop areas from building coefficient,
• Equating swimming pools with planted surfaces.

Henceforth, ΝΟΚ bonuses will not apply uniformly, but only after scientific evaluation and integration into the urban plans (Special/Local Urban Plans – ΕΠΣ/ΤΠΣ), expected to be completed in two years.

This means that urban planners will define incentive zones, considering location, urban development level, characteristics, environmental capacity, and settlement density—offering targeted, justified use of the formerly annulled ΝΟΚ bonuses.