Property taxes

Three bills and a ministerial decision prepared by the economic staff are changing the taxation on real estate. More specifically, the bill will be discussed at the Parliament, in the coming days, with the changes in the property tax ENFIA, while the issuance of the ministerial decision with the list of professions that will have an extra tax deduction will be also discussed.

Permanent reduction of ENFIA property tax by 13% was announced by Prime Minister Kyriakos Mitsotakis.

The statement of Kyriakos Mitsotakis is as follows:

The scenario concerning the postponement of reforms to the real estate market's taxation system is back on the table. Given that the coronavirus pandemic has locked down economic activity and reduced property transfers to a bare minimum, the argument that it is impossible to make correct valuations of property values is increasingly gaining ground.

The government is considering a 25 percent discount on this year's Single Property Tax (ENFIA) dues for owners who will suffer a loss in income following the state's decision to reduce the rents paid by corporations and households suffering directly as a result of the coronavirus restrictions by 40 percent.

Athens and the broader metropolitan area are set to see an increase in the property rates used for tax purposes, known as "objective values," according to the provisional figures collected by property surveyors for the Finance Ministry.

The new property rates used for tax purposes, known as objective values, that will apply from June 2020, will be used to determine the level of the reduction of the Single Property Tax (ENFIA) for each property separately.

The amount of additional revenues the government projects it will collect from the inclusion of new areas in the objective values system will determine the size of the new Single Property Tax (ENFIA) reductions planned for 2020.

The Finance Ministry is seeking to remedy some serious inequalities in property taxation over the coming months in cooperation with real estate associations, part of another effort to adjust the property rates used for tax purposes and known as "objective values."

Hundreds of thousands of property owners stand to pay five-year fines after legitimizing illegal constructions without declaring the true surface area of their assets.

The Finance Ministry is expecting additional revenues of up to 500 million euros from next year through the inclusion of some 7,500 areas in the system that determines property values (known as objective values) for tax purposes.