ENFIA – a single tax on real estate levied on natural and legal persons, owners of Real Estate from January 1st of each year. This tax is complex, it consists of the main and the supplementary tax: a direct rate calculated from the cost per square meter, and a surcharge – dynamic for natural persons, but fixed – for legal entities. By law, immediately after the acquisition of real estate in Greece, the new owner is required to submit a declaration in the E9 * form, the data of which is used by the tax authority to calculate ENFIA, taking into account existing benefits and concessions.
Rules for calculating and paying the main part of the property tax in Greece
The amount of the main part of ENFIA determines the quality of real estate, namely: the cadastral value of the property, year of construction, footage, floor, location. Since 2014, when the ENFIA calculation rules were first introduced, the procedure of calculating the payment of the main part of the tax has changed several times. The Greek authorities are constantly working to ensure that the owners of inexpensive housing pay less taxes and do not risk being left without a roof over their heads due to unbearable burden.
For 2022, the following main property tax rates apply in Greece:
- €2.80/sq.m – for properties located in areas with an average cost of a square meter from 751 to 1500 euros
- €3.70/sq.m. – for zones with a price of 1501-2500 euros per square meter
- €4.50/sq.m – housing tax in areas where a square meter costs from 2501 to 3000 euros.
You can pay the tax as a single payment, or in installments – in 10 installments. If the market value of the property is less than 150 thousand euros, then its owner has the right to receive up to 30% tax discount.
Since spring 2022, the following benefits have been introduced in Greece for single property tax payers:
- 30% discount on the annual payment, if the apartment or apartment costs less than 100 thousand euros
- 25% discount – if the apartment or apartments cost between 100-150 thousand euros.
Supplementary part of ENFIA
Individuals pay the additional part of ENFIA only if the owned property is valued at a cadastral value more than 250 thousand euros. The additional rate is up to 1.5% of the cadastral value.
The additional part of ENFIA for legal entities owners of real estate, not used in trading activities, is calculated at a fixed rate: 5.5% of every thousand euros of the cadastral valuation. Square meters involved in trade are subject to an additional tax at a rate of 1%.
* The financial department of Grekodom Development provides services for its clients in filing declarations, as well as in paying the annual ENFIA tax. For more information, please contact the department at accounting@grekodom.gr
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