The bill on the new ENFIA, which takes effect this year and includes a number of changes, was submitted to Parliament yesterday, Tuesday.
According to the plan, the total tax will be reduced by 354 million euros compared to last year, and eight out of ten property owners—representing approximately 5 million taxpayers, will pay less ENFIA than they did in 2021.
The new tax will be paid in 10 equal monthly installments.
Also, according to the forecast, the 14% category of property owners—approximately 875,000 taxpayers—will pay the same tax they paid last year.
The only ones who will be required to pay additional tax are 6% of all property owners, or approximately 375,000. Of these, half—that is, 187,500 taxpayers—will face a surcharge of up to 50 euros, while the rest will pay more, with the amount depending on the zone in which their properties are located.
The draft law also includes new tax brackets, with reduced rates, for properties located in areas with zone values of up to 3,000 euros, provides for the elimination of the supplementary tax for individuals and its incorporation into the main tax, while there are also changes to the tax deduction scale.
According to the bill:
- The method for calculating the ENFIA tax for individuals is being amended, as it differs from that for legal entities or legal entities (it is henceforth equal to the base tax on each property plus a surcharge for natural persons based on the total value of their assets).
An heir who succeeds following renunciations is included among those subject to ENFIA, as specifically provided.
The ENFIA exemption is extended through 2022 for properties located:
in areas of the Attica Region and the Regional Unit (RU) of Corinth, which were affected by the fires of July 23 and 24, 2018, subject to the specified conditions for the owners of these properties. Similarly, the exemption from the ENFIA tax on the rights to the entire real estate estate of the deceased due to the aforementioned fires is extended through the year 2022, the exemption from the ENFIA tax on the rights to the entire real estate estate of those who died as a result of the aforementioned fires (which was in effect for the years 2018–2021).
within the designated settlements of the Regional Units of Florina, Kozani, and Grevena (applicable for the year 2021).
within the administrative boundaries of the municipalities of Mantoudi-Limni-Agia Anna and Istiaia-Aidipsos in the Regional Unit of Euboea, Central Greece Region, subject to the specified condition (applicable specifically for the year 2021).
- The method for calculating the base tax that makes up the ENFIA is being changed. Among other things, the base tax rates per tax zone, as well as the corresponding tax rates, are being adjusted. The rates for the basic property tax are set, for example, as follows:
- for a price range of 751 to 1,500 euros per square meter, to 2.80 euros per square meter instead of the current 3.70 euros per square meter,
For a price range of 1,501 to 2,500 euros, the rate is set at 3.70 euros/sq. m., whereas under the current system, for a price range of 1,501 to 2,000 euros, the rate is 4.5 euros/sq. m., and for 2,001 to 2,500 euros, it is 6 euros/sq. m.
For a price range of 2,501 to 4,500 euros, the rate is set at 4.50 euros/sq. m., instead of the current rate of 7.60 euros/sq. m.
- This law sets forth details regarding the inclusion of new areas in the objective property valuation system (APAA) and specifies the relevant obligations of taxpayers.
The method for calculating ENFIA discounts for individuals is being revised, based on the total value of their real estate holdings. The following are provided as examples:
The 30% tax deduction is being extended to real estate valued at up to one hundred thousand (100,000) euros, whereas currently this deduction applies to real estate valued at up to 60,000 euros.
Section 25% specifies the tax deduction for real estate valued between 100,001 and 150,000 euros.
- ENFIA is to be paid in up to ten (10) monthly installments (until now, there was no maximum number of installments).
8a. Provisions are established regarding the deadline for filing real estate information returns, particularly in cases involving heirs following renunciations of inheritance, as well as in cases of inheritance.
8b. The Land Utilization Coefficient is determined for lots located in areas that are included in the objective real estate valuation system, as specifically defined.
