BUSINESS

No change to ‘objective values’ before 2018

TAGS: Property, Taxation

The property rates used for tax purposes (known as “objective values”) will not be adjusted before next year after all, and neither will the Single Property Tax (ENFIA).

The new rates will form the basis for the 2018 ENFIA, but the fiscal result will be exactly the same for state coffers, with 2.65 billion euros of revenues being foreseen. New objective values will bring changes to the rates used for the calculation of the tax, and it is highly likely that several exemptions from ENFIA will be abolished as of next year.

Any expectations that owners may have clung onto that ENFIA might be abolished altogether – as government officials pledge year after year – are vanishing, and they will have to wait until 2020 for the hypothetical application of the so-called countermeasures for a reduction in the tax should the primary budget surplus exceed 3.5 percent of gross domestic product.

The draft agreement between the government and the country’s creditors says that technical difficulties have resulted in the adjustment of the objective values to market prices being delayed by at least six months. Therefore, instead of being ready by next month, the new system won’t be up and running before early next year, with the 2018 ENFIA notices due to be issued in March.

Online