BUSINESS

Property tax hikes on the cards with the new objective values

PROKOPIS HATZINIKOLAOU

TAGS: Property, Taxation

The Greek real estate map will be undergoing some serious changes as of Thursday, when the new objective values are to be published. The new rates used for tax purposes will have an effect on 21 taxes and levies imposed on properties, with many owners facing addition costs, not only for the Single Property Tax (ENFIA), but also for ownership transfers, inheritances and parental concessions.

It is also possible that the municipal levy will go up from 2019, though local authorities will likely postpone the decision until after the local elections of 2020.

Since the introduction of the ENFIA tax in 2014, this will be the first time it will increase, as over 1 million owners will have to pay between 3 percent and 30 percent more.

According to sources the biggest hikes are expected in low-rate parts the capital, where the zone price will soar from 600 to 1,000 euros per square meter. The latest information (unless there is some form of political intervention) points to an annual ENFIA increase in the areas of Drapetsona, Keratsini, Renti, Perama and Elefsina – among the region’s poorest districts – that will be far above the expected figure of 20 euros at around 80-100 euros per property.

The hikes in these densely populated areas, revealed by Finance Minister Euclid Tsakalotos himself who told SYRIZA deputies that 15 percent of owners will see an increase, including those in low-rate areas, while the bill will be even heavier for tourism destinations such as Myconos, Santorini and parts of central Athens. There will be no change in the ENFIA that 67 percent of owners pay, while just 18 percent will see a decline in their dues thanks to a drop in their local zone rates.

Provisional ministry data also show that there may be some leeway for easing the burden on large property owners by raising the threshold for the supplementary property tax from 200,000 to 250,000 euros, as the country’s creditors have proposed. The latter have rejected the government’s intention for a gradual increase in the objective values across two or even three years.

Up until 2017 there were 500,000 property owners who paid the supplementary tax, which amounted to 630 million euros in total. Their total assets were valued at 607.61 billion euros, according to the old objective rates.

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