The government announced a new permanent reduction of ENFIA by 13% yesterday, a move that raises the overall tax reduction within four years by more than 30% of the pre-election commitment.
Analyzing the complete plan for real estate, right after announcement by the Prime Minister, Kyriakos Mitsotakisthe Minister of Finance, Christos Staikouras stated that eight out of ten citizensie five million taxpayers, will see a reduction in ENFIA this year and permanently.
He added that the reduction reaches 350 million euros and that the vast majority of citizens will benefit from it.
“Within 2.5 years, during the current government of New Democracy, the total reduction of ENFIA amounts to 34% compared to 2018. That is, natural persons will pay, from this year, a total of 920 million euros less than in 2018.
The total certified real estate tax, from 2022, permanently, without the zone extensions that we expect the integration of their data, is reduced by an additional 13% compared to 2021, ie reduced by 860 million euros compared to 2018 .
In particular, from 2022, the total amount of the certificate will be set, according to estimates, at 2.23 billion euros, reduced by 350 million euros compared to 2021, “said Mr. Staikouras.
Under the new framework, eight out of 10 citizens will pay less ENFIA, 14% will pay the same amount, while a small minority, about 6%, will see a reasonable charge.
The charge concerns owners mainly in new areas that have joined the system of fair values, as well as a portion of taxpayers with very large assets after the full integration of the additional tax in the owner.
The reductions in detail
In addition, the 30% tax deduction currently in force for real estate up to 60,000 euros is extended to 100,000 euros, now covering 65% of taxpayers, compared to 54% before. These are 733,000 natural persons, mainly from the lower and middle incomes.
Also, from 20% to 25%, the tax deduction for taxpayers with real estate value increases from 100,001 to 150,000 euro. That is, at least an additional 400,000 middle-income taxpayers will receive a larger deduction.
Significantly reduced basic building tax rateswith an emphasis on the lower and middle value zones, so that 65% of the old zones have a decrease, 34% remain stable and only 1% see an increase.
At the same time, several low and medium zone scales are integrated at the lower scale levels.
Its rates are decreasing basic land taxso that 91% of the old zones have a decrease, 7% remain stable and only 2% see an increase.
The certificate on the basic land tax is now reduced by an average of about 50%.
The additional tax – for natural persons – is integrated in the basic tax, in a way that corrects distortions and injustices of the past, which burdened a part of society too much.
There are no changes to the additional corporate tax.
More doses
According to what the Minister of Finance said, the new reduced ENFIA will be paid in more installments. It is estimated that the certificates will be issued by the end of April, and payments can then be made in 10 installments.
“With the changes that we will present to you today, we are proceeding with a reform of ENFIA with the direct benefit of the citizen”, stressed the reductions in the new ENFIA, the Deputy Minister of Finance, Apostolos Vesyropoulos.
On the basis of new objectives
At the same time, he noted that “we are facing the consequences of the adjustment of objective values, so as not to burden the citizens:
1st With a new reduction of ENFIA, even for taxpayers with real estate in areas where prices have increased,
2nd By abolishing the additional tax for natural persons and its integration in the main tax and
3rd With a more rational and proportional tax, correcting distortions and injustices “.
More specifically
1. with the new fair values ​​there was an increase in prices to 60% of the zones.
2. Thanks to the interventions in the basic building tax, in 65% of the pre-existing zones there will be a reduction, in 34% the tax remains unchanged and only in 1% of the zones there will be a tax increase.
3. Corresponding reductions will apply to the plots, with the result that 91% of taxpayers will see a reduction in ENFIA.
4. It is also abolished, as we had promised, the additional tax for natural persons and is included in the main tax.
5. The additional tax is currently calculated on the total value of the property, if it exceeds 250,000 euros.
6. This tax for natural persons is abolished and a tax is now imposed on the value of the property, provided that the property is worth more than 400,000 euros.
7. The rates of the main tax are reduced and scales are consolidated, for small and medium zone prices in the buildings.
8. The rates are reduced in all the scales of tax calculation of the plots.
9. These changes concern both natural and legal persons.
For example, the rate of the basic building tax for a zone price from 1,051 to 1,500 euros / sq.m. is set at 2.80 euros / sq.m. instead of the current 3.70, ie a reduction of 27%.
For a zone price from 1,501 to 2,500 euros, the rate is set at 3.70 euros / sq.m., While with the current regime for a zone price from 1,501 to 2,000 euros, the rate is 4.5 euros / sq.m. and from 2,001 to 2,500 is 6.
The tax reductions on the plots are even bigger.
Indicatively, for the value of a plot from 75 to 100 euros per sq.m. the coefficient is set at 0.0375 instead of 0.1850, ie it is reduced by 80%.
At the same time, there is a significant increase in natural tax deductions for small and medium-sized properties.
Specifically, the discount is set at 30% for property up to 100,000 euros, instead of property up to 60,000 euros that is valid today, and at 25% for property over 100,000 euros and up to 150,000 euros, instead of 20% that is valid today.
Through the last intervention alone, an additional 1,100,000 taxpayers benefit.
Detailed examples
Ap. Vesyropoulos cited some examples, “so that everyone understands the reality but also the substantial size of the new reduction of ENFIA on a practical level”, as he characteristically stressed.
First example
Apartment in New Philadelphia, 1st floor 120 sq.m., twenty years old, with a zone price of 1,200 euros, paid in 2021 a tax of 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%.
Second example
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%.
Third example
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%.
Fourth example
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%.
Fifth example
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.
Additional examples of ENFIA calculation
First example
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%.
Second example
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%.
Third example
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%.
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