Most property owners will pay a reduced Single Property Tax (ENFIA) next year, while the Finance Ministry is proceeding with the increase of monthly installments to 10 or 12 for the payment not only of ENFIA but also of income tax.
According to the government plan, the fiscal space exists for a 3% reduction in the ENFIA dues, while there should be some extra fiscal space that may run up to 250-300 million euros by the time the competent committees (that have undertaken to incorporate the supplementary property tax into ENFIA and introduce another 3,463 zones into the system of objective values) have ended their work.
The new ENFIA will start being paid in March next year, six months earlier than usual. It will be paid in 10-12 monthly tranches, ending either in December 2022 or February 2023.
In the European Commission’ 12th report on the country’s enhanced surveillance, authorities affirmed their commitment to reforming ENFIA based on the new objective values and incorporating the 3,463 areas into the system. The state will expect takings of €210 million or €250 million every month, depending on the number of installments.
As for income tax, currently paid in three tranches every year, the Finance Ministry is also considering breaking the payment down into 10 or 12 tranches. In that case the online TAXISnet system must open for tax declaration submissions by early March at the latest, and all necessary documents from enterprises’ accountants will have to be sent to the tax administration by late February, so that the details can be included in taxpayers’ statements. Next year the tax authorities will attempt to have almost all data filled in on the forms, such as incomes from rentals and other sources, so that the system works faster with the fewest possible interventions.
The tax administration intends to have rental details entered into statements automatically, through the interconnection of the TAXISnet rental declaration system with tax statements.