For which categories of unauthorized construction are fines reduced?

For the past week, owners of unauthorized buildings who have not yet begun or completed the “regularization” process have been armed with calculators. The new framework, which has been put out for consultation, provides for significant reductions in certain categories of urban planning violations—mainly medium-sized and old unauthorized buildings—while extending the beneficial arrangements to economically weaker groups. And, once it’s in place, it could allow for the “transfer” of those who have already started paying fines under some of the previous arrangements, with the fines being offset.

The fifth law in a row since 2009 aimed at “regularizing” urban planning violations is now in its final stages. The ministry’s goal is to present a regulation that is more favorable to low-income earners, targeting—indirectly but clearly—the large number of people who joined one of the three previous regulations (the Birbilis law on semi-open spaces and the Papakonstantinou and Kalafatis laws on all illegal structures), who are unable to pay the fine and complete the registration process. So let’s see who “benefits” from the new regulation:

1. Firstly, the initiation of the procedure, which is marked by the payment of a fee, is cheaper. The fee is reduced by half (compared to the current regulation) for all unauthorized constructions up to 5,000 square meters, starting at €250 for illegal structures up to 100 square meters and reaching €4,000 for illegal structures between 2,000 and 5,000 square meters.
2. The amount of the fine is significantly reduced in areas where objective values and zone prices were reduced in the 2016 revision. Given that the reductions ranged from 5% to 21% depending on the area, the reduction in the settlement fine will be proportional. The previous regulation used the prices in force in 2011 as the basis for calculating the fine.
3. Owners of unauthorized buildings who can prove that they were built between 1983 and 1993 will pay 60% of the fine, compared to 80% today. This difference is calculated based on the size (in square meters) of the unauthorized building.
4. The legalization of illegal spaces within the building’s perimeter (specifically, basements connected internally to the floor above, attics, and lofts) will be “settled” with a 30% fine, compared to the 50% currently in effect.
5. Legalizing urban planning violations in areas outside the plan for smaller structures is becoming significantly less expensive. More specifically, currently in these areas, the fine is doubled (i.e., it has a coefficient of 2), while under the new regulation it will be reduced by 35% for excesses up to 100 sq.m., by 25% for excesses between 100 and 200 sq.m., and by 15% for excesses between 200 and 500 sq.m. For areas exceeding 500 square meters, the coefficient for calculating the fine remains the same.
6. The fine is also reduced in areas that are included in the city plan. When the urban planning study for the inclusion of the area is pending, the fine is reduced by 29.5% compared to today (coefficient 1.2 compared to 1.7).
7. Two new categories of citizens are added who receive special treatment: beneficiaries of Social Solidarity Income will pay only 20% of the fine (only for their main residence) and can suspend payment of installments for two years. The long-term unemployed are also entitled to a similar deferral and will pay 30% of the fine.

When does it increase?

However, there is also a category of fines that is increasing. In an effort by the ministry to give it an “environmental” character in addition to its “pro-people” character (as much as a regulation for legalizing urban planning violations can have such a character), the fine is increased by 20% for unauthorized buildings located in protected areas and traditional settlements or parts of cities.

If a citizen who has begun the regularization process under the current regulation finds that the fine would be cheaper under the new regulation, then they can “transfer” to the new law and pay the remaining amount. In fact, this option is also available to those who began the process of legalizing unauthorized buildings under Laws 3843/10 and 4014/11 and were obviously unable to pay the fine (obviously, because the deadline for payment of fines under both regulations has passed). However, if the fine already paid is higher, it is expressly stated that no money will be refunded. Of course, a number of issues remain to be clarified, e.g. how the “transfer” of the arbitrary fine from one arrangement to another will be carried out, whether the fines will also include the surcharges that had been imposed due to late payment of the predetermined installments, etc.

The consultation on the draft law will be completed on September 22, so it is expected to be submitted to Parliament in early October. The current regulation expires on October 8, and the ministry’s intention is for the two regulations to coincide in time.