BUSINESS

Objective rates to determine ENFIA breaks

PROKOPIS HATZINIKOLAOU

TAGS: Finance, Taxation, Property

The new property rates used for tax purposes, known as objective values, that will apply from June 2020, will be used to determine the level of the reduction of the Single Property Tax (ENFIA) for each property separately.

According to Prime Minister Kyriakos Mitsotakis’ announcement in Parliament last week, the average level of the ENFIA reduction next year will come to 8 percent. However, some owners will see their property tax drop less than 5 percent from 2019, while others will enjoy a reduction of as much as 12 percent.

The government is seeking to ensure that the increase in objective values will not result in excessive hikes for property owners in areas where the distance between objective values and market rates remains large, so that the ENFIA reduction by 22 percent this year is not rendered invalid.

Objective values are likely to grow in areas such as the Athens city center, where prices have soared in the last few years, as well as in cheaper areas where objective values remain low. In those areas ENFIA will only have a minimal reduction. Property taxes will actually rise for owners of properties in popular tourism destinations that will enter the objective value calculation system next year.

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