Previous situation
The Director of Revenues issued memo no. 1069/S1 dated January 22, 1996 instructing all the units concerned with built property taxation to add up half the balcony area to the overall area of the respective construction unit (house or other units), in order to estimate revenues directly based on the sale price per square meter.

On November 6, 2007, the Minister of Finance issued Circular no. 1791/S1 concerning the taxation mechanism associated with glazed balconies (balconies fitted with glass/aluminum panes) and prescribed treating them like normal balconies, thus subjecting them to the built property tax based on half the area they cover without imposing any fines and without the need for re-estimation.

Later, the Minister of Finance issued Circular no. 3262/S1 on 18/8/2015 regarding glazing balconies reaffirming estimation as though they were open balconies (i.e. based on half the surface area.)

New circular
The new Circular no. 4414/S1 abrogated all previous circulars and considered all balcony areas, whether open or fitted with glass and aluminum, as part of the real estate units. If no duly registered rental agreement is available for the building in question or any similar building, the circular also stipulated direct estimation of revenues subjecting the balconies to built property taxation based on their entire surface.

The new circular relied on the Construction Code no. 646/2004 which authorized fitting balconies with all kinds of sliding glass panels and they have thus become equipped to be part of the used spaces. Furthermore, constructors and landlords deem the balconies in their entirety as part of the overall area of the units and therefore they must be taxable.

 

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