PFAs and dwelling-located companies have to register as such, and provide documents to have their local taxes established
Companies and self-employed persons with home offices have to submit declarations to local tax authorities, by March 31st, accompanied by documents showing the use of the building, according to the Tax Code. Depending on the latter and on registration of utilities, taxes shall apply as for dwellings – increased by no more than 30% – or non-residential buildings – at least twice the current taxes.
The tax system for buildings has been changed according to purpose (residential, non-residential or dual) through the new Tax Code which came into force from January 1st, 2016. Consequently, the tax return that establishes the tax/charge on residential/non-residential/dual-purpose buildings owned by individuals was published in joint Order 4087/2069 of 2015 of the Minister of Finance and the Minister of Administration.
The buildings that accommodate offices of companies and PFAs should be categorized as dual-purpose, therefore owners being liable to pay a total amount adding the tax for the building area used as a dwelling to the tax for the area reserved for business.
Owners of inactive companies registered at their home address have to fill in a statutory tax declaration.
Individuals that own dwellings where companies or self-employed persons (PFA) are registered can make a statutory declaration mentioning that they do not operate from the registered office, and will therefore pay tax as for residential buildings, according to data to be included in the tax return that establishes the local tax.
According to the form, individuals who own a building used for a dual purpose, both residential and non-residential, whose areas cannot be delimited, as in the case of flats, have to check a box which states that “the mailing address of the building corresponds to the tax domicile of an economic operator, but no business activity is conducted there”, and write this by hand, as a statutory declaration, on the next line. The form section requiring data of the building, needed to establish the tax on residential buildings, has to be filled in as well.