Bigger tax bill for owners of large property

A number of court decisions and the exemption of property owners who have suffered damage due to earthquakes resulted in a 340.6-million-euro shortfall in the revenues expected from the Single Property Tax (ENFIA) last year.

ENFIA revenues came to 3.36 billion euros in 2016, but in 2017 they dropped to 3.02 billion. This has raised serious concerns at the Finance Ministry, as this year the hole may be even larger due to the upcoming adjustment of the taxable property rates (known as “objective values”), which in the most expensive areas will likely be reduced.

In that case the ministry will need to adjust its ENFIA rates, adding to the load imposed on taxpayers. It is likely that owners of properties valued at 200,000 euros and over will have to pay more, so that the reduction of the ENFIA takings by more than half a billion euros will be offset through the supplementary property tax.

At the moment more than 500,000 property owners in Greece pay the supplementary tax, amounting to 629 million euros last year. Now, this tax, which is imposed on property owners whose total real estate assets are valued at over 200,000 euros, is expected to soar to some 1.1 billion euros.