PROPERTY TAXATION

Ups and downs of new ENFIA

Ups and downs of new ENFIA

People who own property in areas that have seen a small or no increase in taxable rates, known as objective values, can look forward to a significant reduction in their Single Property Tax (ENFIA) bill, which in some cases may go as far as half of that they paid last year.

The owners of assets in areas that have seen a big increase in objective values – there are examples in Attica where zone rates have doubled – will have to pay more, but their dues will eventually be offset by the new calculation method and will amount to no more than a few dozen euros, at least for properties with a value of between €80,000 and €100,000.

The new ENFIA calculation system provides for significantly lowered rates overall, reaching up to €3 per square meter, and will even affect expensive areas where zone rates are in excess of €3,000 per square meter. The rate reductions, therefore, will offer significant relief to owners of assets with a reduced objective value and a significant absorption of tax hikes for others.

Calculations in some extreme cases within the Attica region reveal how the new system works: Among the zones that have seen the greatest reduction are the seaside towns of Rafina and Voula, with the objective value in the former dropping 31% to €1,250/sq.m. and in the latter by 20% to €2,350/sq.m. Consequently, the owner of a 20-year-old house with a surface area of 75 sq.m. in Rafina, east of the capital, will pay 46% less than last year, or €156, while the owner of a similar house in Voula, on Athens’ southern coast, will pay 44.5% less, or €268.

Homeowners in zones where objective values have gone up, on the other hand, will pay more tax, but the rise will be smaller in percentage terms than the value increase. 

For example, zone LH1 in central Athens has seen its objective value soar 95% this year to €1,850 per square meter. However, the property tax for an apartment similar to that described above will come to €206, up from €161.5 last year, or 28% more.

Likewise in the northern Athens suburb of Iraklio, the objective values in zone Z have gone up by €1,000/sq.m. but the ENFIA dues for a 75-sq.m. apartment will rise from €206 to €268, a relatively small increase.