Tax-free thresh­old planned for ENFIA

Next year’s prop­erty levy will likely soar for lux­ury man­sions cur­rently out­side town-plan­ning zones

Kathimerini English - - Focus - BY PROKOPIS HATZINIKOLAOU

The Fi­nance Min­istry is plan­ning to in­tro­duce a tax-free thresh­old for the Sin­gle Prop­erty Tax (ENFIA) for next year, as well as to in­cor­po­rate ar­eas on main­land Greece and on the is­lands that have lux­ury man­sions but very low prop­erty taxes into town-plan­ning zones.

Sources say that the thresh­old will not ex­ceed 20,000 or 30,000 eu­ros and will ex­clu­sively con­cern own­ers of prop­er­ties val­ued up to that amount. In 2016, over 6.1 mil­lion prop­erty own­ers will ef­fec­tively pay a new prop­erty tax whose an­nual rev­enues will be the same as the cur­rent tax, at 2.65 bil­lion eu­ros. Ac­cord­ing to a se­nior min­istry of­fi­cial, this is to en­sure that any changes, in­clud­ing the new ob­jec­tive val­ues to ap­ply from Septem­ber 2016, will not en­tail any re­duc­tion in the tak­ings tar­get, which is also dic­tated by the bailout agree­ment.

The own­ers of prop­er­ties to­tal­ing more than 20,000-30,000 eu­ros will be taxed from the first euro, so the planned mea­sure will only con­cern own­ers of very small prop­er­ties. Were the thresh­old to be set at 50,000 eu­ros, the same min­istry source said, 2.7 mil­lion own­ers would have been ex­empt from ENFIA, putting the achieve­ment of the tar­get at risk.

In case the thresh­old of 20,00030,000 eu­ros is in­tro­duced, all other ex­emp­tions that cur­rently ap­ply will be abol­ished.

The min­istry now wants to in­clude in town-plan­ning zones parts of the coun­try where lux­ury prop­er­ties have been lo­cated and are taxed at a rate of just 1 euro per 1,000 square me­ters. This prob­lem will be dealt with when ob­jec­tive val­ues (prop­erty rates used for tax pur­poses) are ad­justed next Septem­ber.

The min­istry will also amend the ENFIA cal­cu­la­tion model via changes to the rates and the zone brack­ets. The aim is to re­duce the bur­den mainly on own­ers of lowand medium-priced prop­er­ties, whose ob­jec­tive val­ues do not ex­ceed 800 or 1,000 eu­ros/sq.m.

The sup­ple­men­tary tax, im­posed on own­ers whose prop­er­ties are val­ued at more than 300,000 eu­ros, will likely see its rates grow from the cur­rent range of 0.1 to 1 per­cent.

As for the 2015 ENFIA, the no­tices for 6.1 mil­lion prop­erty own­ers will be is­sued by Oc­to­ber 15, and the first in­stall­ment will be due by Oc­to­ber 30.

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