BUSINESS

Luxury homes to get ENFIA hikes

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Property

Owners of luxury properties will see their Single Property Tax (ENFIA) bill grow, as the government will introduce criteria related to the quality of construction and this will be one of the parameters that determine the taxable rate of each property, known as the “objective value.”

Therefore, luxury properties will have a higher objective value than simpler constructions of the same age on the same street.

At the same time, one of the parameters for the objective value of an office will be the existence of a bathroom: This is because most old offices in the center of Athens share one or two toilets on the same floor. Sources say that offices without a toilet will obviously have a significantly lower objective value.

The property market regards this development as very positive, arguing that there ought to be a distinction between luxury and simpler properties, similar to the rules that apply in France.

However, the problem in the adjustment of property rates in the first half of 2020 will be their harmonization with market prices. It is almost impossible for the Finance Ministry to achieve that as hardly any transactions have been recorded in most areas.

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