GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning In Greece, planning and zoning are governed by a combination of national legislation, regional planning frameworks and local regulations. The key legislation and controls governing planning and zoning are as follows. Key Legislation • The New Building Code (NOK) Law 4067/2012: The fundamental law outlining zoning, land use and building regulations across Greece. It defines land use types (residential, commercial, industrial), building height, density and other urban development parameters. • Spatial Planning – Sustainable Develop- ment and Other Provisions (Law 4417/2016): Focuses on sustainable development, region - al development, and the creation of regional and local spatial plans. It integrates environ - mental protection and promotes balanced regional growth. • Specific Presidential Decrees: Determine land uses by region. • Environmental Framework Law (Law 1650/1986): Governs environmental pro - tection and requires Environmental Impact Assessments (EIAs) for significant develop - ments, ensuring that projects do not harm natural resources. • Natura 2000: A special regulation for protect - ing areas of ecological importance, which imposes stricter development restrictions in these zones. Governmental Bodies • Ministry of Environment and Energy: Responsible for national spatial policies, envi -
securing the credit, further impacting the recovery for secured creditors. If liquidation is not completed within 18 months, piecemeal liquidation might be imposed, which can yield lower returns. 3.10 Taxes on Loans Digital Transaction Duty is levied on interest- bearing and interest-free loans, as well as all types of credits, including those equated with loans and credit cards, at a rate of 2.4% or 3.6%, with a cap of EUR150,000 per loan. For the sake of clarity, Digital Transaction Duty is not imposed on loan interest, bond loans issued under Law 4548/2018 and bank loans. Bank loans (other than bond loans) are subject to a levy pursuant to Law 128/1975 which is imposed on credit (rate around 0.6%). Payments of interest under bond loans are sub- ject to withholding tax, which amounts to 15%. There is no withholding tax for other types of bank credit arrangements. The hypothecation registration fees under credit facilities are proportional to the secured amount (currently around 0.775% of the secured amount), with the exception of collateral for bond loans, where a significantly advantageous flat fee for each registration of security interests with the relevant public registries applies, which amounts to EUR100. As regards the hypotheca - tion deeds, where a public notary needs to be involved, the notarial fees are in the range of 0.2%–1% of the secured amount. However, if the notarial hypothecation deed is provided as collateral for a bond loan financing, then only a fee amounting to EUR2,500 per deed will apply.
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