Greece to cut property tax by 22 pct

Greece to cut property tax by 22 pct

Greece will cut its ENFIA property tax by an average of 22 percent as of this year as part of growth measures being put together by the recently appointed conservative government.

The move, that will cost 450 million euros, is seen as providing a boost to the real estate market where prices have been rebounding but gains are largely limited to areas popular with tourists. Introduced in 2011, the ENFIA tax was initially imposed on real estate assets as a temporary levy to prevent Greece from going bankrupt but was kept on and has weighed heavily on demand in the sector.

Since then, property prices in Greece have been rebounding with the latest Bank of Greece figures showing a 4 percent rise in residential housing prices in the first quarter of the year after gains of 1.6 percent in 2018.

The extent of the ENFIA tax cuts will depend on the value of real estate held by each taxpayer. Those with property of up to 60,000 euros will see their ENFIA cut by 30 percent, while the reduction on assets valued between 60,000 to 70,000 euros will be at 27 percent. On property in the range of 80,000 euros and 1 million euros, the tax cut will reach 20 percent, while large property owners will benefit from a 10 percent reduction.

The tax cuts are likely to be passed by lawmakers this week and will be effective immediately with the next batch of annual ENFIA bills going out to property owners next month.

According to the Finance Ministry, 3.9 million taxpayers in Greece will benefit from the tax cuts.

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