By Chrysostomos Tsoufis

A fine of €10,000 awaits businesses that will not be insured against natural disasters according to a provision of the tax bill submitted to Parliament. In fact, the fine is doubled if the company has not complied within 30 days from the imposition of the fine.

Businesses with a turnover of more than €500,000 are required to be insured (the Ministry of Finance reduced the threshold from €2 million to increase the number of insured persons who are exempt from any state aid grant for material damage to their assets).

The insurance must cumulatively cover forest fires, floods and earthquakes for at least 70% of the value of the company’s total assets (buildings, equipment, raw materials, goods, commercial vehicles, means of production and stored products).

Mandatory vs forest fire and flood it also happens car insurance based on the current commercial value of the vehicle and above and these will be exempted from any State aid measure.

The insurance obligation exists continuously from the granting of the license and registration plates, regardless of whether the vehicle is moving or operating, unless the immobility procedure has been observed

Vehicles belonging to the State or its body are excluded.

The bill also provides for the doubling from 2025 of the ENFIA discount to 20% for real estate if their taxable value – on the basis of which the ENFIA is calculated – does not exceed €500,000. The 10% discount is maintained for properties worth more than €500,000

As value for the insurance of the property, the reconstruction value of the building or buildings is taken, not counting the value of the plot, which cannot be less than €1000 per square meter. However, the cost of reconstruction can be adjusted by decision of the Minister of Finance after a proposal by the head of the AADE.

A condition for the discount is that the insurance covers the previous year and has a duration of at least 3 months.
If the insurance period is less than a year, then the discount is adjusted accordingly (e.g. 7/12, 8/12, etc.)

Regardless of whether they are insured or not, very expensive homes – with a value of more than €500,000 as provided for in the bill – will be exempt from the housing assistance grant for building reconstruction or repair, temporary housing grant, first aid grant and one-off emergency financial grant for the treatment of simple repair work and the replacement of household goods, due to an earthquake, fire from natural causes and flood.