Who are the big winners from the reduction of ENFIA

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Another pre-election promise of ND is being implemented before the end of the government term. This is the reduction of ENFIA, which after yesterday’s announcements now averages 34%, exceeding the promise of a reduction of 30%.

The first reduction took place in the summer of 2019, shortly after the takeover of power by ND and was of the order of 22% to follow yesterday which was 13%. So individuals will be asked to pay 920 million less than ENFIA paid in 2018.

The significant changes included in the new plan in addition to the reduced rates are:

• the complete abolition of the additional tax for all properties worth up to 400,000 euros.

• the integration of the additional tax on the owner for real estate over 400,000, which in its vast majority is less than the one they paid last year.

• The new Tax will be cleared by the end of April and will be paid in 10 monthly installments.

Based on what became known yesterday, this year’s ENFIA account will be reduced for about 5 million taxpayers, which corresponds to about 80% of all property owners.

For 14%, ie for about 875,000 taxpayers, the Tax will have no differences and will remain at the same levels.

Additional tax will pay 6%, ie 375,000 property owners. Of these, half, ie 187,500, will have a charge of up to 50 euros.

Who benefits from the reduction of ENFIA

The reduction based on the examples given by the Ministry of Finance, despite the significant increase in fair values, the most profitable are the taxpayers with small and medium real estate, as well as those who own plots for which the tax calculation rates reduced by up to 80%.

The total value of the real estate owned by natural and legal persons, now amounts to 750 billion euros after the adjustment and expansion of fair values. The total tax that will be confirmed this year is estimated to amount to 2.233 billion euros from 2.587 billion euros confirmed for 2021. The total reduction amounts to 354 million compared to last year.

The financial staff estimates that due to the reduction of the tax and the increase of the number of installments, the tax collection will increase and will move over 81% that has been recorded since 2018.

It should be noted that the new scale will calculate the discounts in ENFIA for individuals. The first step of the 30% discount is expanded and will cover the property up to 100,000 euros instead of the 60,000 euros that is valid until today. For 733,000 individuals, the discount rate increases by 10%. Also, the discount for properties from 101,000 euros to 150,000 euros is increased from 20% to 25%.

Regarding tax exemptions, the 50% and 100% discounts are maintained at ENFIA for socially vulnerable groups. The calculation of the deductions will be based on the income of 2020 declared by the taxpayers in the tax return submitted in 2021.

The new ENFIA with examples

1. Apartment in New Philadelphia, 1st floor 120 sq.m., twenty years old, with a zone price of 1,200 euros, paid in 2021 tax 372.96 euros. In 2022 the price of the zone increased to 1,500 euros and the corresponding tax is 282.24 euros. While the value of the property increased by 25%, the tax decreased by 24.32%.

2. Apartment in Xanthi, 1st floor 100 sq.m., twenty years old, with a zone price unchanged at 750 euros, paid tax in 2021 220.50 euros, while in 2022 will pay tax 147 euros, ie reduced by 33.33%.

3. Apartment in Kaisariani, 1st floor 100 sq.m., twenty years old, with a zone price of 1,100 euros, paid tax in 2021 310 euros. And while in 2022 the zone price amounts to 1,350 euros, it will pay a tax of 220.50 euros. That is, with an increase in the value of the property by 22.73%, the tax is reduced by 29.05%.

4. Apartment in Egaleo, 1st floor 100 sq.m., twenty years old, with a zone price of 1,100 euros, paid tax in 2021, 310.80 euros. In 2022, with the zone price being set at 1,300 euros, it will pay a tax of 220.50 euros. That is, while the value of the property increases by 18%, the tax decreases by 29%.

5. Apartment in Thessaloniki on Nea Egnatia Street, 1st floor 150 sq.m., twenty years old, with a zone price of 1,100 euros paid a tax in 2021, 466.20 euros. In 2022, with the zone price being set at 1,350 euros, it will pay a tax of 352.80 euros. That is, while the value of the property increases by 22.73%, the tax decreases by 25%.

6. Apartment in Agia Paraskevi, 1st floor, 300 sq.m., twenty years old, with a zone price of 1,250 euros, paid in 2021 a tax of 1,217.40 euros. In 2022 the price of the zone increased to 1,500 euros and the corresponding tax is 1,027 euros, reduced by 15.64%.

7. Apartment in Santorini, 1st floor, 100 sq.m., twenty years old, with a zone price of 4,950 euros, paid in 2021 a tax of 1,744 euros. In 2022 the price of the zone amounts to 5,050 euros and the corresponding tax is 1,991.75 euros, increased by 14.21%.

8. Apartment in Mykonos, 1st floor, 250 sq.m., twenty years old, with a zone price of 4,900 euros, paid in 2021 a tax of 10,206 euros. In 2022, with the zone price being set at 5,900 euros, it will pay a tax of 11,891.24 euros, increased by 16.51%.

9. Apartment in Nea Smyrni, 1st floor, 100 sq.m., twenty years old, with a zone price of 1,200 euros, paid in 2021 a tax of 310.80 euros. In 2022 the price of the zone increased to 1,500 euros and the corresponding tax is 235.20 euros, reduced by 24.32%.

10. Apartment in St. Petersburg, 1st floor, 220 sq.m., twenty years old, with a zone price of 1,150 euros, paid in 2021 a tax of 279.92 euros. In 2022 the price of the zone increased to 1,500 euros and the corresponding tax is 198.45 euros, reduced by 29.05%.

11. Apartment in Lavrio, 1st floor, 110 sq.m., twenty years old, with a zone price of 1,100 euros, paid in 2021 a tax of 341.88 euros. In 2022 the price of the zone amounts to 1,300 euros and the corresponding tax is 258.72 euros, reduced by 24.32%.

12. Apartment in Platys Gialos of Mykonos, 1st floor, 200 sq.m., twenty years old, with a zone price of 2,500 euros, paid in 2021 a tax of 1,828 euros. In 2022, with the zone price being set at 3,250 euros, the corresponding tax is 2,424 euros, increased by 32.60%.

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