BUSINESS

Various changes under consideration as regards property taxation next year

THANOS TSIROS

TAGS: Property, Taxation

A cloud of confusion continues to hover over what changes the public can expect next in property taxation. Government sources are now saying the capital gains tax will not be reintroduced in 2017 after all, while the plan to start calculating the Single Property Tax (ENFIA) based on value rather than size will also be shelved for now.

The Finance Ministry has not yet made any official statements about the capital gains tax, which is supposed to come into force in January after its suspension ends on December 31. It seems there isn’t the technical capacity to impose the measure that would force sellers to pay tax on the difference between the price at which they bought the property and that at which it is being sold. Therefore, the most likely scenario is that the suspension will be extended.

The ENFIA changes planned will likely concern a “mild form” (to avoid an excessive burden on farmers) of the supplementary tax to be imposed on cultivated land.

Changes may also include the full exemption from ENFIA of those with an annual income of 9,000 euros or less and property valued at less than 85,000 euros for non-married owners and 150,000 euros for married owners.

Market prices should start being used for tax purposes from the second half of 2017, while changes are also possible to tax-free thresholds in the case of parental concessions and inheritances.

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