Register to receive Taxand’s latest opinion on topical tax news
News › Weekly Alert Article
The new property tax (ENFIA)
Law 4223/2013 introduced the new property tax referred to as “uniform tax on real estate property” (ENFIA). Taxand Greece discusses what the new property tax entails.
Although initially announced as a unified property tax regime, the new regime actually comprises 2 taxes, namely:
It is computed on an asset per asset basis, and the same formula is applied both for individuals and legal entities (separate formulas apply for buildings, plots or fields); the amount of tax due ranges from Euro 0.001 to Euro 13 per sq.m., readjusted by a number of coefficients (eg based on floor, age, façade etc)
It is computed on the basis of a progressive tax scale for individuals and flat rates for legal entities, referring to values determined according to a system that is similar, although not identical, to the currently applicable statutory value system.
Law 4223/2013 introduced further amendments on the regime governing the taxation of capital, namely:
- Reduction of real estate transfer tax to 3% instead of the formerly applicable rates of 8% for values up to Euro 20,000 and 10% on any excess
- Release of Real Estate Investment Companies from the obligation to perform revaluation of their real estate property every 4 years
- Broadened scope of the exemption from Special Real Estate Tax (15%) for certain categories of investors (eg social security companies, pension funds, regulated Collective Investments in Real Estate companies etc)