The Finance Ministry is promising a reduction on the Single Property Tax (ENFIA) by 30 percent by cutting the property rates used for tax purposes, known as “objective values.”
Officials close to Alternate Minister Nadia Valavani said that in such a case revenues from property taxes will drop from the 2.65 billon provided for in the budget to 1.855 billion euros, creating a shortfall of 795 million euros, which will then have to be covered by other means of revenues.
The new objective values are expected to apply as of July 1 and it is on that basis that the 2015 ENFIA will be calculated. The new rates will be delivered to Valavani in the next few weeks and the ministerial decision will immediately follow to put them into practice.
The most likely scenario provides for an average decline in objective property rates by 20 percent. In expensive zones, where objective values are considerably higher than going market rates, the reduction will exceed 30 percent, while in areas where the difference between objective values and market rates is smaller the reduction may well be below 20 percent.