BUSINESS

ENFIA hikes for 1 mln owners

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Property

The data on the adjusted property rates used for tax purposes (known as “objective values”) that the Finance Ministry released on Tuesday showed that for 946,671 households and 7,126 enterprises, the Single Property Tax (ENFIA) will grow this year by up to 200 euros, or a little more in some cases.

Despite the interventions in the ENFIA rates, with the expansion of the brackets and the increase in the tax-free threshold of the supplementary property tax, the government has not managed to eliminate the added load on owners, leading to ENFIA hikes in densely populated areas, on Greece’s islands and at tourism destinations in general.

According to the data on the revision of the rates across all 10,216 zones, 2,122 zones saw a reduction, 4,302 saw no change and 3,792 (or 37.11 percent of all zones) recorded a rate hike.

Increases in objective values do not necessarily result in an ENFIA hike too, as in several cases the zone rate rises are within the existing brackets, so the tax due remains the same. Also, in order to minimize the hikes or to avoid burdening some owners further, the limit of the first ENFIA bracket has been raised from 500 to 550 euros per square meter and of the third from 1,000 to 1,050 euros/sq.m., with the latter concerning the vast majority of properties in Greece.

At the same time the minimum amount of property (in terms of value) for which the supplementary property tax is imposed will be raised this year from 200,000 euros to 250,000 euros, as was expected.

The trial calculations of the 2018 ENFIA showed that besides the hikes for over 950,000 owners, 1.47 million individuals will pay less and there will be no change for almost 4 million property owners.

Tax experts warn that besides the ENFIA hikes, thousands of owners, particularly at tourism destinations, should brace for income tax hikes too as the rise in objective values will also raise the total value of their assets on which their income tax is also calculated, known in Greek as “tekmiria.”

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