Many unsuspecting property owners discover, often by chance, that even after disconnecting electricity to a property, municipalities continue to charge them municipal fees and impose fines.
For example, when requesting a simple certificate of no debts for Real Estate Ownership Tax (ΤΑΠ) to sell a property, they find themselves entangled in a bureaucratic nightmare, facing fines of up to 13 years’ worth of fees, compounded with steep surcharges.
The Problem:
Most citizens are unaware that disconnecting electricity from a property does not automatically exempt it from municipal cleaning and lighting fees. The exemption applies only from the date the relevant declaration is submitted to the municipality, not the date of electricity disconnection.
The Proposed Solution:
The Ministry of Interior is working on legislation to automatically stop municipal fee charges for properties that are vacant and not electrified. Deputy Minister Vasilis Spanakis recently committed to this reform at a POMIDA (Property Owners Association) conference.
Under the new plan:
- Property owners will no longer need to submit declarations to their municipalities.
- When a property is reported as non-electrified to the power utility operator (ΔΕΔΔΗΕ), this information will automatically be forwarded to the relevant municipality, ending municipal fee charges.
Current Challenges:
Municipalities currently claim that exemptions only apply from the date a declaration is submitted, not the date of electricity disconnection. POMIDA argues that just as fee billing begins automatically when electricity is connected, the same should apply for disconnection.
The situation is even worse for owners of vacant commercial properties, where municipal fees are significantly higher than for residential properties. For instance:
- In Athens, annual fees for a 100m² residence are €165.
- For a 100m² shop or storage unit, the fees can reach €650.
- Failure to pay these fees doubles the fines, resulting in thousands of euros owed for properties with little or no actual value.
What the Reform Will Change:
The proposed legislation aims to address these issues by:
- Ensuring that electricity disconnection automatically triggers exemption from municipal fees if the property remains vacant.
- Requiring owners or users to declare occupancy if the property is used without electricity, so appropriate fees can be charged.
Municipalities will retain the right to conduct inspections or request documentation to verify property status.
By linking municipal systems with ΔΕΔΔΗΕ, the process will become more straightforward, reducing excessive charges and eliminating bureaucratic hurdles.
