BUSINESS

Landlords set to get ENFIA cut

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Finance

The government is considering a 25 percent discount on this year’s Single Property Tax (ENFIA) dues for owners who will suffer a loss in income following the state’s decision to reduce the rents paid by corporations and households suffering directly as a result of the coronavirus restrictions by 40 percent.

Development Minister Adonis Georgiadis referred to this possibility on Wednesday, telling ANT1 TV there will be tax incentives for landlords who lose 40 percent of their income from rents, including a possible 25 percent ENFIA discount – this was the very proposal that the POMIDA property owners federation had put forward on Tuesday as regards those who are consistent in paying the tax.

A Finance Ministry official confirmed to Kathimerini that this is one of the measures being examined for the support of property owners, on the condition that landlords pay this year’s ENFIA in a lump sum within the deadline for the first installment, whenever that is set for; this is because it seems clear that this year’s tax declaration submission will be postponed, which will also put off the deadlines for the 2020 ENFIA.

The ministry is also examining the idea of making the ENFIA discount proportionate to each landlord’s losses: Therefore the discount rate will not be the same for an owner who has missed out on 10,000 euros and another who is left 1,000 euros worse off. If it is decided that the discount will be graded, property owners will have to declare the exact amount of rental revenues they have lost.

Sources say that out of the 1.5 million property owners who have revenues from rents, the measure will concern about 1 million, who will see a reduction of 400-500 million euros in the amount they are asked to pay.

The reduction should be particularly appealing for landlords, provided that in the midst of the crisis they are able to pay a lump sum. It should also satisfy the state, as it will bring this year’s ENFIA revenues into its coffers faster, as it is estimated that some 1.8 billion euros could be collected in September or October.

Online