PROPERTY TAXATION

ENFIA may skip zone hike

Reduction to property tax calculation rates could offset the increase in objective values

enfia-may-skip-zone-hike

The inclusion of 3,500 more zones to the system of official property rates (known as objective values) are leading to the expansion of the tax base, allowing the Finance Ministry to offset the increase of the Single Property Tax (ENFIA) from the upward adjustment of zone rates, mostly in cities but also in villages.

The inclusion of those currently undertaxed areas will help the government effectively delete the ENFIA hikes in a fiscally neutral fashion through changes to the rates and the brackets, so as to implement the 8% average cut of ENFIA.

For instance, when it comes to Athens city center, property surveyors have recommended a zone rate hike of 50%. That would entail a major increase to ENFIA dues from 2022, so to avoid that, the government will modify the tax calculation brackets to keep the dues on similar if not the same levels as this year.

Speaking on Skai radio yesterday, Finance Minister Christos Staikouras stressed that in the ministerial decision on the new objective value zones that the new ENFIA will be based on will be published in the Government Gazette in the next few days. He said that this way, 98% of Greece’s population will be covered by 13,808 zones: The 3,478 zones concern new entries in the system and 165 expansions of existing zones.

“Out of the 165 zones, 133 will see a considerable increase of 40%. Among the 3,478 new zones there will be value hikes in some, but most will see a reduction,” the minister said. 

Staikouras added that for the great majority of property owners next year’s ENFIA will be the same or reduced, with the exception of owners whose assets are currently off the system.

These new inclusions concern many popular tourism spots, both in Attica and in the rest of Greece, where ENFIA is likely to go up: Such areas include Varkiza, Agia Marina, parts of Porto Rafti, and the whole of Salamina and Kythira in Attica, plus certain parts of Halkidiki, Zakynthos (such as Katastari and Volimes), Cephalonia (such as Lixouri and Sami), etc.