PROPERTY TAXATION

More realty zones enter the system

Objective values database to have 1,400 areas added so that the entire country is included

More realty zones enter the system

The Finance Ministry is proceeding with the inclusion of the last few realty zones in Greece that remain outside the system of price determination for tax purposes (known as “objective values”) so that the entire country will be incorporated within the year.

In cooperation with local authorities, the ministry’s agencies have mapped out the zones based on which property surveyors will determine the taxable rates – i.e. each area’s objective value. This concerns some 1,300-1,500 areas, mainly in western Greece, as well as in other regions, which as of January 2023 will have their Single Property Tax (ENFIA) calculated based on their own zone rates and not on those of adjacent or neighboring zones.

For the inclusion of some 6,700 areas in the system last year, the ministry’s agencies used data from the Hellenic Statistical Authority (ELSTAT) stemming from the previous census (of 2011), where it became obvious that there were permanent residents in certain areas outside the system.

That led to the new delineation of zones in those areas, with the cooperation of municipal authorities and the Independent Authority for Public Revenue. Then the chartered surveyors with whom the ministry cooperates were asked to propose objective values for the new zones.

After the incorporation of those last few zones in the system, the government will proceed with the remapping of zones in the country’s major cities. The ministry’s agencies, in cooperation with universities and the Technical Chamber of Greece, are expected to complete their proposals to that end within 2022 and submit them to the political leadership of the ministry. Kathimerini understands several zones will be divided into two, while in other cases there will be extensions and mergers of zones.

There are some serious problems in the commercial factor of objective values, which has remained unchanged as a parameter in the last 40 years. This means the growth or decline of an area’s popularity has not been taken into account at all over the last few decades.