OBJECTIVE VALUES

Which areas face property taxation hikes

which-areas-face-property-taxation-hikes

Over 7,000 property zone rates have gone up as of January 1 with the application of the new taxable value of properties, known as “objective values.” That pushes up dozens of taxes and charges related to real estate, as well as raising the cost of property transactions.

For example, on the island of Mykonos the transfer tax for a 100-square meter property has gone up by 8,250 euros. Within Attica, in Dafni the same tax for a similar property has soared from €3,000 to €5,250 (up 75%), in nearby Argyroupoli from €4,800 to €7,050, and in Kamatero from €2,400 to €3,900 (a 62.5% increase). As for Lagonisi in eastern Attica, the transfer tax has jumped 93.3% from €2,250 to €4,350.

Several areas of the country were previously not included in the objective values system, such as Zakynthos, Cephalonia, Chios, Samos, Patmos, Karpathos, Ilia, Nafpaktos, Kythira and other areas with significant tourism activity. In those areas the Single Property Tax (ENFIA) used to be calculated based on the lowest zone rate of the same municipality or regional entity. Now each property’s ENFIA is based on its own features – i.e. the real value of each asset – taking dues much higher.

The new zones (new inclusions and extensions of existing ones), which number 3,643 (or 26% of all zones in the system), face considerable changes: Rates have jumped by 225% in three zones on Mykonos to €3,800-3,960 per square meter, while Ithaki has seen a 250% leap to €2,100/sq.m. and Rhodes has been hit with a 200% hike in objective values to €2,100/sq.m. On Kos values have risen 108% to €1,350/sq.m., at Kassandra in Halkidiki by 94% to €1,550/sq.m., on Cephalonia by 79% to €1,250/sq.m. and at Hersonissos in Iraklio on Crete by 75% to €1,050/sq.m.

There have also been huge zone rate increases in the center of Athens, as well as the capital’s southern suburbs, with objective values matching market rates to a great extent.

At the same time several areas have seen their zone rates drop compared to the previous system, especially those that used to be calculated by estimate, having been outside the system. There have been reductions in 1,509 zones, including Florina (down 50% to €300/sq.m.), Chios island (down 44% to €450/sq.m.) and Orestiada (down 20% to €400/sq.m.).