PROPERTY TAXATION

ENFIA to have new brackets

Local objective values will determine whether each owner faces a cut or a hike this year

ENFIA to have new brackets

The new ENFIA blueprint that the government has presented to its creditors contains changes to the rates and the brackets of the Single Property Tax in a bid to avoid any hikes that the new taxable prices of properties, known as objective values, would generate. Otherwise – i.e. with the rates unchanged – ENFIA would have shown hikes of up to 60%, according to Finance Minister Christos Staikouras.

Speaking on Skai TV, Staikouras said the new ENFIA will be ready within two weeks, noting that the “rates have been tweaked for the better, so as to prevent any hikes.”

He added that, overall, the 2022 ENFIA will be reduced from 2021 for most owners and noted that any hikes for those who used to pay a supplementary property tax (which is now incorporated into ENFIA) will depend on how much their zone rates have increased. He explained that the supplementary tax concerned 5% of owners but accounted for 15% of property tax revenues from individuals.

In 2021 the supplementary tax amounted to 646 million euros, with €368 million originating from individual taxpayers and €278 million from corporations. Sources say the 68,652 enterprises will continue to pay the supplementary tax in 2022.

The scenario presented to the country’s creditors, in the context of the 13th post-bailout assessment, provides for changes to brackets, but also introduces a limit for specific cases where the tax rate has soared due to the increase in objective values.

The Independent Authority for Public Revenue has already received all the parameters from the competent committee of the ministry and is set to begin the simulation procedure for the tax each owner will have to pay. Based on the sum the IAPR will come up with, the ministry will have a clear picture of who will enjoy a property tax cut this year and who will need to shoulder more dues. The outcome of the exercise will be forwarded to the creditors for approval before the bill is submitted to Parliament for voting by the end of February.