ECONOMY

Some 750,00 property owners not to benefit from ENFIA cut

some-750-00-property-owners-not-to-benefit-from-enfia-cut

More than 750,000 property owners, who account for 50 percent of the annual revenues stemming from the Single Property Tax (ENFIA), will see no drop in their ENFIA dues this year, which effectively leaves the middle classes out of the 2019 tax reduction.

These owners, who pay the state some 1.3 billion euros altogether as regards their real estate assets and each have total property of a taxable value (known as “objective value”) of more than 202,857 euros, will not be entitled to any reduction in their ENFIA payment this year as that value level is the threshold above which the discount of 100 euros per owner does not apply.

Data show that 3.49 million owners with properties valued at up to 60,000 euros each will benefit by 50-55 euros on average; another 1 million owners with assets worth 60,000-100,000 euros will see their ENFIA dues shrink an average of 70-80 euros compared to last year; and owners of property valued at between 100,000 and 150,000 euros will be 55 euros better off this year on average.

Moreover, fearing the reaction of thousands of property owners, the government has decided that the property levy will this year be calculated according to the zone rates applying since January 1, 2019, and not those that will be determined by end-June. This solution serves the planning of the government that would under no circumstances wish to see Greek households receive an increased ENFIA bill because of the adjusted zone rates in the middle of the summer.

For the first time, the ENFIA pay notices will be uploaded in late July on the Taxisnet online system, and payment will begin from late August for the first installment, instead of end-September as has been the case in recent years. It will also be completed by end-December in five monthly tranches.

However, should the Finance Ministry extend the deadlines for the income tax statement submission (although the system accepting the statements has opened earlier than ever this year), the first ENFIA tranche will not be due before end-September.