More than 350,000 property owners will see an increased property tax bill (ENFIA), about 880,000 will pay the same tax, while the majority, i.e. 5 million owners, will see a significant reduction in this tax. As a result, most homeowners are either small or medium, and some have large properties. Conversely, those with very large properties will either pay the same tax as last year, or perhaps even double the tax. The winners are those who have real estate from 250,000 euros to 400,000 euros.
Those who will lose from the new property tax
The owners who will pay the increased tax make up 6% of the total, namely 360,000 owners. Half of them, i.e. 180,000 will pay a higher tax up to 50 euros, and for the rest the tax can be doubled. Of what has been announced, since the new tax rates have yet to be announced, property owners owning property where the price of the zone has doubled will pay more, as well as those who were previously taxed. After the inclusion of these areas in the system of objective determination of the value of real estate, ENFIA will increase and, possibly, more than double.
At the same time, the abolition of the additional tax does not necessarily mean that all owners who have paid it so far will receive a reduced settlement bill. For medium-sized properties worth about 400,000 euros, if the price of the zone has not increased significantly, their owners will receive discounts. In contrast, for larger properties, a special tax will apply that will increase the base tax to integrate some or all of the additional tax they paid. At the same time, there will be no discounts for a few, but very large objects. Instead, another scale will be created that will bring the tax back to last year’s level or higher.
Property tax beneficiaries
The winners are 5,000,000 taxpayers. These include almost all owners who own real estate in the “old” zones and in which this tax, although increased, but within reasonable limits. Those who own property valued at €100,000 will receive a 30% tax rebate that will arise, while those with property between €100,001 and €150,000 will receive a 25% tax rebate from the 20% that was in effect last year. It is noted that as the total amount of real estate increases, discount rates will decrease.
The winners include those who have many small apartments, the cost of which does not exceed 400,000 euros. For example, someone who owns six apartments of 50,000 euros each, with a total value of 300,000 euros, will see a significant reduction in the basic tax, while not being charged any other rate. On the contrary, they will have a tax deduction. At the same time, the main construction tax rates have been significantly reduced, with a focus on lower and medium zones, so that 65% of the old zones have a reduction, 34% remain stable, and only 1% have an increase.
Discounts are significant mainly in zones with a zone price from 1000 to 2500 euros. Basic construction tax rate for a zone valued from 1051 to 1500 euros/sq.m. is set at 2.80 euros/sq.m. instead of the current 3.70 euros, i.е. 27% discount. For a zone with a price of 1501 to 2500 euros, the rate is set at 3.70 euros / sq.m., and under the current regime for a zone with a price of 1501 to 2000 euros, the rate is 4.5 euros / sq.m. and from 2001 to 2500 – 6 euros.
Land owners are also winners, as the basic land tax rates are significantly reduced, so that 91% of the old zones have a reduction, 7% remain stable and only 2% see an increase. The reference on the basic land tax is now reduced by an average of about 50%. Approximately, if the cost of the plot is from 75 to 100 euros per sq.m, the rate is set at the level of 0.0375 instead of 0.1850, i.е. reduced by 80%.
Increasing tax with an increase in fair value
Apartment in Elliniko, 3rd floor, 100 sq.m., 15 years old, with a zone price of 1400 euros, the tax paid in 2021 was 328.86 euros. In 2022, when the price of the zone reaches 2,600 euros (an increase of 85.81%), the corresponding tax will be 399.96 euros, an increase of 21.62%.
Decrease in tax if fair value increases
For an apartment in Nea Smyrni, 3rd floor, 110 sq.m., 15 years old, with a zone price of 1200 euros, paid a tax of 361.74 euros in 2021. In 2022, the price of the zone has increased to 1,500 euros (25% increase) and the corresponding tax is 256.64 euros, reduced by 29.05%.
Decrease in tax if fair value increases
Apartment in Sitia, Crete, 1st floor, 150 sqm, 15 years old, with a zone price of 850 euros, the tax for 2021 was 382.80 euros. In 2022, the price of the zone is 1200 euros (23.53% increase) and the corresponding tax is 231.00 euros, reduced by 39.66%.