BUSINESS

Supplementary tax hike on islands and Athens city center

PROKOPIS HATZINIKOLAOU

TAGS: Property, Taxation

Aghios Nikolaos on Crete, Kolonaki in central Athens, and the islands of Myconos and Paros are the zones that have seen the biggest hikes in taxable property rates (known as “objective values”), which will send the supplementary property tax soaring.

While the Single Property Tax (ENFIA) remains largely at the same level in some of the above areas, the supplementary tax to be imposed on assets over 250,000 euros per owner will increase the burden on taxpayers. Most of the Cyclades islands are preparing for major hikes in the supplementary tax due to the rise in the objective values there.

Notably any parents wishing to make property concessions to their children had better do so by the end of the year, as the objective values only apply this year for ENFIA and not for transfers levies etc: All other 20 levies on properties will start applying as of January 2019.

Market experts estimate that the postponement of the time the levy hikes will apply from to next year will lead to an increase in transactions, mainly in expensive areas where hikes are announced, and to a rise in inflows to state coffers. In the last quarter of 2017 some increased activity started in property transactions that continued into the first quarter of 2018 as the objective value adjustment forced buyers and parents to act faster.

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