Arbitrary: transfer of declarations from the previous to the new law begins • benefits & discounts

More favorable regulations, more installments, and smaller fines for owners of unauthorized buildings are brought about by the fifth law in a row, which recently came into effect.

Already, market players and relevant authorities report that there has been some movement—perhaps not as much as expected, but still noteworthy—as citizens plan to take advantage of the provisions and join the categories that will cost them the least.

As senior officials from the Ministry of Environment and Energy explain to Eleftheros Typos, regarding the new declarations—i.e., for new unauthorized buildings—since November 5, when the relevant application of the Technical Chamber of Greece opened, more than 55,000 applications have been submitted. At the same time, a large number of citizens are logging into the system to calculate their fines.

According to the latest data available to the Ministry of Environment and Energy to date, approximately 55% of applications for inclusion have been fully completed under the previous law, while approximately 45% are expected to fall under the provisions of the new law.

More specifically, the total number of unauthorized buildings that have begun the legalization process, based on Law 4014/11 (old law) and Law 4178/13 (previous law), is 1,019,890. The total revenue from both is €1,941,251,896.

Market players estimate that approximately 450,000 owners of unauthorized buildings will make use of the “transfer” from the previous law to the current one. These are owners of unauthorized buildings whose declarations are in the “initial submission” and “submission” stages and who have not paid the regularization costs.

If these citizens actually go through with this process, they will be able to benefit from a combination of discounts.

Specifically, they will be able to take advantage of the additional 20% discount that is valid until April, the recalculation of fines with reduced zone prices, an increase in installments to up to 100, and for those whose unauthorized buildings were constructed between 1983 and 1993, they will receive an additional 20% reduction in the fine, while in cases where a structural study is required, this is indirectly subsidized, as the new fine has an additional 10% reduction. It should be noted that the transfer can be made from December 13 onwards, when the system will open.

It is worth noting that the previous law, Law 4178/2013, has been ruled constitutional, so owners who have complied with it are not at risk. As for the current law, Law 4495/2017, its “legal certainty” has not yet been ruled on and, as market players themselves point out, it could be considered a “gray area” until the situation becomes clearer…

It should be noted, however, that the bill stipulates that those who are found to be in violation of urban planning regulations will automatically lose their discounts.

At the same time, every six months, the Technical Chamber of Greece will inform municipalities of all the adjustments that have been made, which means that anyone who has concealed square meters in order to pay less municipal fees will face penalties.

It should be noted that buildings constructed illegally prior to 1955 are not considered illegal, are not subject to legalization fines, and may be transferred.

The same applies and for old arbitrary which have been excluded from the demolition with the corresponding laws of the years 1977, 1983, 1985 and 2005.

Illegal buildings constructed between 1955 and 1975 are legalized upon payment of a fee of €250, without the payment of a fine.

Illegal buildings constructed between 1975 and 1982 are legalized upon payment of a fee and 15% of the fine.

Unauthorized constructions from January 1, 1983, to January 1, 1993, are legalized upon payment of a fee and 60% of the fine, while for unauthorized constructions and unauthorized changes of use from January 1, 1993, to December 31, 2003, 80% of the single special fine is payable. From January 1, 2004, to July 28, 2011, the fee and 100% of the fine are payable. For unauthorized constructions with irregularities exceeding 40%, the final exemption from demolition will be granted with the purchase of an additional coefficient, when the relevant electronic system is ready.

Payment methods and vulnerable social groups

The owner can choose between a one-off payment (which secures a 20% discount if made within one month), immediate payment of 30% and the remaining 70% in installments (securing a 10% discount, also within one month), or payment in installments (up to 100). It should be noted that the owner is entitled to a 20% discount if they start the process by April 8, 2018, and a 10% discount if they start the process between April 9, 2018, and October 8, 2018.

As regards vulnerable social groups, persons with disabilities pay 15%–20% of the fine, repatriated expatriates pay 20% of the fine, and large families pay 20%–50%. In addition, families with three children and an individual income of up to €25,000 or a family income of up to €40,000 pay 30% of the fine, as do the long-term unemployed.