ENFIA: The bills are coming - When «go up» the statements - How to pay

The new ENFIA tax assessment notices are expected to begin appearing on Taxisnet next week for approximately 6.3 million property owners, who will be required to pay approximately 2.3 billion euros.

ENFIA Reduction for 8 out of 10 Taxpayers

The new tax will be calculated with new tax brackets and reduced tax rates for properties located in areas with zone prices of up to 4,000 euros, Meanwhile, the supplementary tax on individuals is being abolished and replaced by a special tax on real estate with an assessed value exceeding 400,000 euros.

Starting Thursday, the Independent Authority for Public Revenue (AADE) will begin processing the new ENFIA tax, and for this reason, the application for submitting Real Estate Information Declarations (E9) for the year 2022 It will not be available starting Thursday at 11:00 a.m. and until the issuance and posting of the ENFIA administrative assessment notices are completed and the 2022 ENFIA amended returns become available.

Under the new provisions, 8 out of 10 taxpayers will see a further reduction in their ENFIA tax on their tax statements, Approximately 14% of taxpayers will see no change in their ENFIA, while an increase will apply only to 6% of taxpayers. The majority of them are property owners either in areas with a significant increase in zone prices or in areas that were included in the objective valuation system for the first time and whose tax burden has been very low until now.

ENFIA 2022: Key Points

The new ENFIA tax will be paid in full in 10 equal monthly installments, starting this coming May. The key points of the new tax are:

1. New basic tax bracket: Under the new scale, the tax per square meter is reduced for all properties located in areas with a zone price of up to 4,000 euros per meter. The tax increases only for areas with a zone price of 4,500 euros or higher. Specifically, for zone prices ranging from 4,500 to 5,000 euros per square meter, the new tax is set at 13.40 euros per square meter, compared to 11.3 euros previously. For properties in the price range of 5,000 euros per square meter and above, the tax is set at 16.20 euros, compared to 13 euros previously.

2. New discount rates: The tax relief rates are being eliminated for very large estates and are being limited to estates valued at up to 400,000 euros.

Specifically:

• For real estate valued at up to 100,000 euros (instead of the current 60,000 euros), a 30% discount is provided.
• For real estate valued at up to 150,000 euros, a 25% discount is provided, instead of the 20% discount that was in effect until now.
• For real estate valued at up to 250,000 euros, a 20% discount is provided.
• For real estate valued at up to 300,000 euros, the discount is set at 15%.
• For real estate valued at up to 400.00 euros, a 10% discount applies.

3. Additional tax: For properties valued at more than 400,000 euros, a new tax is imposed on each property, calculated at a rate ranging from 0.2% to 1%.

The tax scale is structured as follows:

• 400,000.01–500,000 euros: tax of 0.20%
• 500,000.01–600,000: tax of 0.30%
• 600,000.01–700,000: tax rate 0.40%
• 700,000.01–800,000: tax of 0.50%
• 800,000.01–900,000: tax rate 0.60%
• 900,000.01–1,000,000: tax of 0.70%
• 1,000,000–2,000,000: tax of 0.90%
• Over 2,000,000: 1% tax

4. Tax Surcharge: For assets valued at more than 500,000 euros, the total tax is increased by up to 20%, depending on the value of the assets. The surcharge will be calculated using the following rates:

• for real estate valued at up to 650,000 euros, according to 5%,
• for real estate valued at up to 800,000 euros, pursuant to 10%,
• for real estate valued at up to 1,000,000 euros, pursuant to 15%,
• for real estate valued at 1,000,000.01 euros or more, at a rate of 20%.

5. Land-use coefficients: The basic land tax rates are being reduced by up to 80%. For example, for land valued between 75 and 100 euros per square meter, the rate drops to 0.0375 euros, instead of 0.1850 euros.