Prop­erty tax to change and af­fect own­ers of for­eign-based as­sets

Kathimerini English - - Focus - BY PROKOPIS HATZINIKOLAOU

Al­ter­nate Fi­nance Min­is­ter Try­fon Alex­i­adis an­nounced yesterday that the gov­ern­ment will change the Sin­gle Prop­erty Tax (ENFIA) next year and be­gin to tax prop­er­ties that Greeks own abroad.

Ad­dress­ing the Prod­expo con­fer­ence in Athens, Alex­i­adis said the gov­ern­ment is ex­am­in­ing an Ital­ian law, in­tro­duced by for­mer prime min­is­ter Mario Monti, whereby Ital­ians with prop­er­ties in other coun­tries had to pay the dif­fer­ence be­tween the tax they paid to the state where the prop­erty was lo­cated and that charged by the tax author­i­ties at home.

He added that it is un­fair for the owner of a prop­erty in Greece with a mar­ket value of 50,000 eu­ros to pay the ENFIA tax while the Greek owner of a house worth 5 mil­lion eu­ros in Lon­don pays noth­ing to Greece. The Fi­nance Min­istry has al­ready re­ceived two lists from the Bri­tish tax author­i­ties of Greeks’ prop­er­ties in Lon­don, Alex­i­adis noted.

Kathimerini un­der­stands that the new tax the gov­ern­ment in­tends to charge own­ers of prop­er­ties abroad will be en­tirely dif­fer­ent to the ex­ist­ing ENFIA tax. The min­istry will in ef­fect im­pose a tax on Greeks with for­eign­based as­sets, which for now will not con­cern se­cu­ri­ties etc. If the prop­erty tax in the coun­try in which the as­set is lo­cated is the same as that charged by Greek author­i­ties, per­haps the own­ers will not be charged ex­tra.

On ENFIA, Alex­i­adis said the new way the prop­erty tax will be struc­tured has not yet been de­ter­mined, but will be more pro­por­tion­ate and fairer, as the gov­ern­ment be­lieves that the ENFIA tax has run its course. The changes will take into ac­count the ad­just­ment of the so-called ob­jec­tive val­ues, i.e. prop­erty rates used for tax pur­poses, ex­pected to be com­pleted by Septem­ber 2016. The min­istry will cre­ate a sys­tem that au­to­matic ad­justs the prop­erty rates so that they are closer to the (far lower) mar­ket prices.

The gov­ern­ment also in­tends to in­tro­duce a tax-free thresh­old of 50,000 eu­ros in the new ENFIA, aimed at ex­empt­ing the own­ers of small prop­er­ties. If that is in­deed the tax-free thresh­old, more than two-fifths, or 41.7 per­cent, of own­ers will pay no prop­erty tax as their as­sets do not ex­ceed 50,000 eu­ros, ac­cord­ing to the present ob­jec­tive val­ues.

If the ENFIA tax-free thresh­old comes to 50,000 eu­ros, over twofifths, or 41.7 per­cent, of own­ers will pay no prop­erty tax as their as­sets do not ex­ceed 50,000 eu­ros ac­cord­ing to the present ob­jec­tive val­ues.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.