PROPERTY TAXATION

ENFIA’s winners and losers

Who will benefit from and who will miss out from the cuts of the new Single Property Tax?

ENFIA’s winners and losers

Some 180,000 property owners around Greece will face a bigger property tax bill this year, as their assets are located in zones where prices have gone up considerably. They are among the minority of owners who will not benefit from the Single Property Tax (ENFIA) cuts announced on Wednesday.

ENFIA hikes will also be coming to those whose assets have just entered the system of so-called “objective value” determination. In some cases their dues will be twice as high as in 2021, though this will be ascertained at the completion of the process and the incorporation of all zones into the dry run the Finance Ministry is in the process of performing.

The abolition of the supplementary property tax for individuals will lead to a reduction of ENFIA for many property owners, though not for those with very valuable assets. As the ministry announced, there will be an additional tax imposed on assets worth over 400,000 euros, with a special set of rates. 

Nevertheless, that will not be the sole addition to the burden on some owners. Ministry sources explain that particularly large properties will also have additional coefficients that will increase their tax, working the opposite way to the discount coefficients for small properties.

For example, for assets worth up to €100,000 there will be a 30% discount on the tax normally stemming from the rates. The discount is calculated on the sum of one’s assets. For properties up to €150,000 the discount drops to 25% and shrinks further as the property grows in value. At a certain point that coefficient will come to zero and then start a reverse course, imposing an increase on the tax dues. It is not yet known where the zero-point will be set at.

Crucially, the new ENFIA will be calculated separately on each asset. Once the tax is estimated based on the set rates, the sum of dues is calculated and then the discount coefficient will be factored in, as the discount (or its reverse coefficient) is based on each individual owner’s property and not on each asset.