On the 8 August this year, the Greek Parliament voted a new Law, no. 4178/13, on ‘Tackling Illegal Building Works, Safeguarding Environmental Harmony and other Provisions’.
This law has two objectives. Firstly, to put an end to potential illegal construction practices. Secondly, to settle the illegal building works that already exist. There is also an attempt to record and oversee the whole of the built environment by providing every public and private building with an ‘electronic identity’. This undertaking shall be discussed in a later article but overall aims to be completed within the next ten years.
The term ‘illegal building work’ refers to all structures that were built without planning permission, or any add-ons not included in approved architectural drawings and diagrams. The term ‘unauthorised use’ refers to the use of a space that is inconsistent with the purpose that was initially stated in the approved plans of the building permit. For example, if a home now operates as a shop or an underground storage space is used as a living space.
Law 4178/2013 pertains to all illegal building works or unauthorised use of a space carried out between the year 1955 and 28/07/2011. All such cases must be declared within 18 months of the date the law came into effect (08/08/2013).
What does the new law foresee?
Law 4178/2013 outlines all actions that are prohibited and that may lead to criminal action with the objective to prevent future illegal building activities. Some examples are:
· Prohibition of all property transactions for all assets with illegal structures or unauthorised uses (Article 1)
· For every property transaction a topographic diagram compatible with The Hellenic Geodetic Reference System 1987 (EΓΣΑ 87) is required, together with a legally binding statement from the owner, as well as a certificate from the engineer declaring and certifying that no illegal structures exist
· Imprisonment for up to six months and a fine ranging from 30,000 euros to 100,000 euros to all professions involved in any property transactions (e.g. notaries, lawyers, realtors, engineers, etc.) for inaccurate certificates or failure to attach the owner’s legally binding statement and/or engineer’s certificate in the contracts. In addition, for engineers especially and regardless of their prosecution, temporary or permanent disqualification from practicing the engineering profession will be imposed depending on the severity of the violation.
Illegal construction units that have been erected prior to 28/07/2011 may be ‘settled’ by paying a fine to the Greek Tax Office as well as a single one-time fee to the Greek state that is determined mainly on the year of construction, the market value of the property and the severity of the illegal construction activity.
Categories of illegal structures and unauthorised use of spaces
Depending on the year of construction and the severity of the illegal activity, illegal building activities are classified in the following categories:
Category A.
This category includes illegal building activities for buildings of private residence use only if built prior to 9/6/1975. These are excluded from demolition if built prior to 9/6/1975. A onetime fee of EUR 500 applies.
Category B.
Category B includes all illegal building works (residence and non-residence) that exist prior to 1/1/1983. These are excluded from demolition if built prior to the year 1983. A onetime fee of EUR 500 applies.
Category C.
Category C includes small-scale illegal works that are also excluded from demolition. A onetime EUR 500 fee applies. Some examples of small-scale illegal works are built-in ovens, water fountains, pergolas etc.
Category D.
Category D includes all illegal building works that do not exceed the authorised building coverage by over 40 per cent and do not exceed the authorised height by over 20 per cent. A fine and a single one time fee apply to settle the illegal structures for 30 consecutive years starting from the settlement date and are excluded from demolition.
Category E.
Category E settles all illegal building works and unauthorised use of spaces, not included in categories A to D. A fine and a single one-time fee apply to settle the illegal structures for 30 consecutive years starting from the settlement date and are excluded from demolition.
The whole process of settling unauthorised building works happens electronically by an authorised engineer. All data and documents pertaining to the illegal building structure are processed in a web-based IT system. The single onetime fee and fine is also determined electronically.
Instalments, Discounts and Favourable Provisions
The Law imposes a single onetime fee as well as a fine that may be paid in instalments of 300 euros or more every six months. Those that declare their illegal building works within the first six months from the date the law came into force (08/08/2013) may pay the fine in 17 instalments. If declared within 6-12 months from the date the law came into force the fine may be paid in 14 monthly instalments. If illegal building works are declared within 12-18 months from the date the law came into force the fine may be paid in 10 monthly instalments. If the whole of the fine is paid in one lump sum within the first six months of the law coming into effect, a 20 per cent discount on the total fine applies.
There are also fee waivers and discounts to vulnerable population groups, people with disabilities, long-term unemployed, individuals with low family income or families with many children as well as repatriated individuals who are entitled to a 50 per cent discount on the fine applicable on their main residence.
Also worth mentioning is the possibility to offset the fine by up to 50 per cent if used for costs to upgrade the building’s energy performance.
Finally, we believe that with Law 4178/2013, the state gives property owners one last opportunity to settle existing illegal building works in order to avoid future hefty fines or invalid property transactions. Along with the enactment of other recent laws such as the ‘Building Inspectors’ Law 4030/2011 (Government Gazette 249/A/25-11-2011) and ‘Electronic Identification of Buildings’ Law 3843/2010 (Government Gazette 62/A/28 -4 to 2010), we believe that the above combination of laws will halt once and for all future illegal building works.
*Christopher welcomes questions or comments from readers at zinas@tekmon.gr