The Plenary of the Parliament has unanimously passed a law proposal spearheaded by DIPA – Cooperation MP, Alekos Tryfonidis, introducing tax exemption for those offloading real estate or transferring shares to pay off Non-Performing Loans. Specifically, the recently passed law retroactively exempts borrowers from the mandatory 0.4% fee to the Central Body of Equal Distribution of Burdens, when the incurred proceeds are used to settle or reduce a non-performing loan in restructuring context.
In addition, the Tax Department has committed to refunding any fees paid between February 22, 2021, and November 17, 2022, as these amounts were used to reduce or pay off non-performing loans. Tryfonidis states that this law helps to cover an existing loophole in the law, benefiting approximately 3,000 borrowers.
However, AKEL MP Nikos Kettiros highlighted the tension between the small-scale relief this law offers to millionaires who also receive the tax break, and the large burden this represents for regular debtors. Similarly, Stavros Papadouris from the Environmentalist Movement-Cooperation, pointed out the inconsistency in tax relief procedures. Tryfonidis’ efforts were applauded by fellow MP Kostis Efstathiou, who blamed the executive’s delay in implementing the νόμος on the backlog.
