From € 35 to € 311, the reduction in ENFIA for Property Owners This Year

Real estate owners will see a very significant gain from the reduction of ENFIA , announced yesterday by Prime Minister Kyriakos Mitsotakis at the start of the parliamentary talks on the government’s programmatic statements.

The reduction of ENFIA announced by the new government concerns all property owners and will actually apply directly from 2019. And not in 2020 as promised by the pre-election engagement of the New Democracy.

This measure of relief for most households in Greece will be more beneficial for smallholders who will see EFGIA down by 30%. However, the middle class will see a significant reduction of 20%. The very few (about 15,000 owners) who have real estate over 1 million euros will see ENFA less 10%. In fact, property owners will benefit from 35 to 311 euros.

Table with examples
Let’s look at examples of how much the Greeks benefit from the measure of the government:

Property Value Tax 2018 Tax 2019     Difference (€)        Difference (%)

The Government’s decision to immediately reduce ENΦΙΑ also concerns clear growth targeting combined with other immediate enforcement measures such as the suspension of VAT on building and the suspension of capital gains tax on real estate transactions. The aim is to take the construction industry again and after a decade of crisis, as well as a number of professions directly linked to it. However, this measure is also a measure of social justice that removes tax burden from the vast majority of citizens who have been overstated in recent years.

Property appreciation of citizens
At the same time, the measure of the reduction of ENFIA inevitably leads to the appreciation of the citizens’ property. Regarding the criticism that ENFIA is primarily concerned with those who have large real estate, the effect of this tax on the value of the property is not taken into account. Because the sale price of an apartment or a plot is significantly increased when it is known that the ENFIA that the new owner will have to pay will be reduced by up to 30%. And this concerns almost all Greek owners who own less or more real estate.
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