Inclusion of properties to boost revenues

In its review of objective values – property rates used for tax purposes – the Finance Ministry is aiming to include real estate valued at an estimated 80-100 billion euros and at least 7,000 new areas in the system.

Government officials estimate that the endeavor, which is seen taking until May to complete, will lead to a 15 percent increase in the taxable value of properties, currently at 478 billion euros for individual owners and at least 120-130 billion for companies – i.e. a total of some 600 billion euros.

If the above estimates prove correct, additional fiscal space of 400 million euros will be created.

Given that the government has already provided for a 140-million-euro increase in revenues from property taxes (ENFIA, inheritance tax, parental concession tax etc) in next year’s budget, a significant amount of 200-300 million euros emerges that could be used for the further reduction of ENFIA by 10 percent on average and the gradual easing of the supplementary property tax (for large ownerships).

The supplementary tax fetches some 626 million euros in revenues per year and its gradual abolition is one of ruling New Democracy’s election pledges.