Reversals in taxation brought by the increases in property values

Changing everything on the map real estate market with the new objective values announced by the Department of the Treasury and will come into force from the new year. The Minister of Finance, Christos Staikouras, presenting the new property values, «dressed» the government's plan in the «cloak» of «correcting past injustices» and «broadening the tax base». Referring to the ENFIA, he said it was being reformulated without increasing the total amount and «any increases in property values will not automatically translate into an increase in ENFIA».

He said that areas that were undertaxed in previous years would be burdened, giving a typical example of a zone in Mykonos, where the price was 1,200 euros and is now increasing by 200%.

The new objective price system

With the new system of property prices, of the 13,808 zone prices that change price, almost half of them come increases, that is, for 6,000-7000 areas, in about 3,000-3,800 come reductions, while 3,500 new areas are included in the system. Following the changes, the tax base for the imposition of ENFIA is expanded to 98% of real estate from 85% today, while a powerful domino effect of charges is created, starting from taxes on transfers (purchases, parental transfers, donations and inheritances) and ending with taxes linked to the taxable values of real estate.

Typical cases of taxes affected are the 24% VAT which is imposed on the sales of newly built buildings that are not primary residences, municipal taxes, taxes such as TAP, taxes on the usufruct of buildings, land exchange - land consolidation, additional fees for the transcription of contracts, registration of real estate in the Land Registry, planning fines for the maintenance of arbitrary buildings and many others. This means that taxpayers have all the time they need to decide whether it is in their interest to acquire or transfer a property by the end of the year.

The cherry will be bigger for owners with properties that are entering the objective system for the first time since until now the determination of their taxable value was done with comparative data so for many plots of land-friendliness the taxes were not representative.

The Secretary General of the Ministry of Finance, Chr. Triantopoulos, said that in 55% of the zones average increases of 19.5% are coming, in 21% the average decrease reaches 14.7%, while for 24% of the zones prices remain unchanged.

Examples

A large increase, by 229%, is found in three zones of Mykonos, as they were calculated to date with a price of 1,200 euros and the final price is now at 3,800 and 3,950 euros, while significant increases are found in zones of areas, including, among others, such as Lagonisi, from 750 to 1.450 euros (increase 93%), Maroussi, from 1,300 to 2,000 euros (increase 54%), Chalandri, from 1,250 to 1,900 euros (increase 52%), Corfu, from 1,050 to 1,600 euros (increase 52%), and Nea Alikarnassos, from 650 to 900 euros (increase 38%).

At the same time, of the new zones, in the new inclusions, an increase is found in 40% of the 3,478 zones, which averages out to 26%. Increases, through the process of certified valuers, identified in areas whose zone price was outside the system of objective determination, such as Ithaca, from 600 to 2,100 euros (increase 250%), Rhodes, from 700 to 2,100 euros (increase 200%), Kos, from 650 to 1.350 euro (increase 108%), Kassandra, Halkidiki, from 800 to 1 550 euro (increase 94%), Kefalonia, from 700 to 1 250 euro (increase 79%), Hersonissos, Heraklion, from 600 to 1.050 euro (increase 75%), Anavissos, from 1.050 to 1.700 euro (increase 62%), Skafidia Ilia, from 650 to 950 euro (increase 46%), and Patmos, from 650 to 900 euro (increase 38%).

At the same time, there are also many areas where the zone values have been reduced compared to the value set outside the system of property values, as the recommendations of the certified valuers approximate more accurately the characteristics of the area. In particular, of the zones of the new inclusions, 1,509 zones, i.e. 43% of the new inclusions, show a reduction in price, which averages out to 18%. Reductions are found in zones of areas such as Florina, from 600 to 300 euro (decrease 50%), Chios, from 800 to 450 euro (decrease 44%), Prespes, from 600 to 400 euro (decrease 33%), Amyndeon, from 600 to 450 euro (decrease 25%), and Orestiada, from 500 to 400 euro (decrease 20%).

As far as the old, existing, 10,165 zones of the property system are concerned, the trend shown by the recommendations of the certified appraisers is upward, as 6,105 zones show an average increase of 18%. Increases, through the process of submission of recommendations by certified valuers, are identified in zones of areas such as Santorini, from 1,100 to 2,250 euros (increase 105%), the center of Athens, from 1,850 to 3,600 euros (increase 95%), Nafplio, from 1.300 to 2 200 euro (increase 69%), Palea Faliro, from 1 650 to 2 750 euro (increase 67%), Vouliagmeni, from 2 400 to 3 850 euro (increase 60%), Glyfada, from 1 650 to 2 550 euro (increase 55%), and Elliniko, from 1 700 to 2 200 euro (increase 29%).

2,729 zones remain unchanged, constituting 27% of existing zones, while 1,331 zones (13% of existing zones) show a decrease, averaging 11%. Reductions can be found in zones of areas such as Farsala, from 500 to 250 euro (reduction of 50%), Naxos, from 800 to 500 euro (reduction of 38%), Ano Liosia, from 650 to 450 euro (reduction of 31%), Dodoni, Ioannina, from EUR 550 to EUR 400 (decrease 27%), Konitsa, from EUR 600 to EUR 450 (decrease 25%), and Dervenochoria, Boeotia, from EUR 500 to EUR 400 (decrease 20%).