PROPERTY TAXATION

ENFIA cut on average by 13%

ENFIA cut on average by 13%

This year’s Single Property Tax (ENFIA) will be reduced by 13% on average, compared to 2021, Finance Minister Christos Staikouras announced on Wednesday, with ministry sources saying the bill to that effect will be tabled in Parliament next week. Once it is voted into law, the tax authorities will start producing the first pay slips for 2022, while the first tranche will be due by end-May and the last by end-February 2023.

The ENFIA cuts will mean a 354-million-euro tax reduction, for a total sum of €2.233 billion. Compared to 2018, the ENFIA takings will drop by €860 million.

Minister Staikouras explained that the bill proposed will tackle the new conditions that the increase in zone rates has created.

The tax administration is currently running pilot projections to establish whether the new ENFIA will in fact bring cuts to 5 million property owners, as the government has announced.

The Independent Authority for Public Revenue is also performing “dry runs” for very large properties, as the process for the calculation of the tax is complex and involves a variety of tax rates, depending on value levels.