The big winners from the reduction of ENFIA

One more election promise of the New Democracy is being implemented before the end of the government's term of office. This is the reduction of ENFIA which after yesterday's announcements now stands at an average of 34%, exceeding the promise of a 30% reduction.

The first reduction was made in the summer of 2019, shortly after the New Democracy came to power and was of the order of 22%, followed by yesterday's reduction of 13%. So then individuals will be asked to pay 920 million less than the ENFIA paid in 2018.

The important changes included in the new plan apart from the reduced rates are:

• the complete abolition of the additional tax for all properties of up to 400,000 euros.

• the incorporation of the additional tax on the owner for properties over 400,000, which in the vast majority of cases is less than the tax paid last year.

• The new tax will be settled by the end of April and will be paid in 10 monthly instalments.

Based on what became known yesterday, this year's ENFIA bill will be reduced for around 5 million taxpayers, corresponding to about 80% of all property owners.

For 14%, i.e. for about 875,000 taxpayers the tax will not vary and will remain at the same level.

Additional tax will be paid by 6%, i.e. 375,000 property owners. Half of them, i.e. 187,500, will have a charge of up to €50.

Who benefits from the reduction of ENFIA

The reduction based on the examples given by the Ministry of Finance, despite the significant increase in property values, taxpayers with small and medium-sized properties are the biggest beneficiaries, as well as those who own land for which the tax calculation rates are reduced up to 80%.

The total value of the real estate owned by individuals and legal entities now amounts to 750 billion euros after the revaluation and extension of property values. The total tax to be assessed this year is estimated at 2.233 billion euros from 2.587 billion euros assessed for 2021. In total, the reduction amounts to 354 million compared to last year.

The economic staff estimates that due to the reduction of the tax and the increase in the number of instalments, tax collectability will increase and move above 81% recorded since 2018.

It should be noted that the new scale will be used to calculate the ENFIA deductions for individuals. The first tier of the 30% deduction is expanded and will cover property up to 100,000 euros instead of the current 60,000 euros. For 733,000 individuals, the deduction rate is increased by 10%. Also, the deduction is increased from 20% to 25% for estates from 101,000 euros to 150,000 euros.

With regard to tax exemptions, the 50% and 100% deductions in ENFIA for vulnerable social groups are maintained. The calculation of the deductions will be based on the 2020 income declared by taxpayers in the tax return filed in 2021.

The new ENFIA with examples

1. Apartment in Nea Philadelphia, 1st floor 120 sq.m., 20 years old, with a zone price of 1,200 euros, paid in 2021 a tax of 372.96 euros. In 2022 the zone price was increased to 1,500 euros and the tax due is 282.24 euros. While the value of the property increased by 25%, the tax decreased by 24,32%.

2. Apartment in Xanthi, 1st floor 100 sq.m., 20 years old, with an unchanged zone price of 750 euros, paid tax in 2021 220.50 euros, while in 2022 will pay tax 147 euros, ie reduced by 33.33%.

3. Apartment in Kaesariani, 1st floor 100 sq.m., 20 years old, with a zone price of 1,100 euros paid tax in 2021 310 euros. And while in 2022 the zone price is 1,350 euros, he will pay a tax of 220.50 euros. That is, with an increase in the value of the property by 22.73%, the tax is reduced by 29.05%.

4. Apartment in Egaleo, 1st floor 100 sq.m., 20 years old, with a zone price of 1,100 euros paid tax in 2021, 310.80 euros. In 2022, with a zone price of 1,300 euros, he will pay a tax of 220.50 euros. That is, while the value of the property increases by 18%, the tax decreases by 29%.

5. Apartment in Thessaloniki on Nea Egnatia Street, 1st floor 150 sq.m., 20 years old, with a zone price of 1,100 euros paid tax in 2021, 466.20 euros. In 2022, with a zone price of 1,350 euros, he will pay a tax of 352.80 euros. That is, while the value of the property increases by 22.73%, the tax decreases by 25%.

6. Apartment in Agia Paraskevi, 1st floor, 300 sq.m., 20 years old, with a zone price of 1,250 euros, paid in 2021 tax of 1,217.40 euros. In 2022 the zone price was increased to 1,500 euros and the tax due is 1,027 euros, reduced by 15.64%.

7. Apartment in Santorini, 1st floor, 100 sq.m., 20 years old, with a zone price of 4,950 euros, paid in 2021 tax of 1,744 euros. In 2022 the zone price is 5,050 euros and the tax due is 1,991.75 euros, increased by 14.21%.

8. Apartment in Mykonos, 1st floor, 250 sq.m., 20 years old, with a zone price of 4,900 euros, paid in 2021 tax of 10,206 euros. In 2022, with a zone price of 5,900 euros, he will pay a tax of 11,891.24 euros, increased by 16.51%.

9. Apartment in Nea Smyrni, 1st floor, 100 sq.m., 20 years old, with a zone price of 1,200 euros, paid in 2021 a tax of 310.80 euros. In 2022 the zone price was increased to 1,500 euros and the tax due is 235.20 euros, reduced by 24.32%.

10. Apartment in Petroupolis, 1st floor, 220 sq.m., 20 years old, with a zone price of 1,150 euros, paid in 2021 tax 279.92 euros. In 2022 the zone price was increased to 1,500 euros and the tax payable is 198.45 euros, reduced by 29.05%.

11. Apartment in Lavrio, 1st floor, 110 sq.m., 20 years old, with a zone price of 1,100 euros, paid in 2021 tax of 341.88 euros. In 2022 the zone price is 1,300 euros and the tax due is 258.72 euros, reduced by 24.32%.

12. Apartment in Platis Gialos, Mykonos, 1st floor, 200 sq.m., 20 years old, with a zone price of 2,500 euros, paid in 2021 tax of 1,828 euros. In 2022, with a zone price of 3,250 euros, the tax due is 2,424 euros, increased by 32.60%.