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The new property tax (ENFIA)

6 Mar 2014

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:

Main Tax
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)

Supplementary Tax
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)

Discover more: The new property tax (ENFIA)

Your Taxand contact for further queries is:
Yerassimos C. Yannopoulos
T. +30 210 69 67 000

Taxand's Take

The new tax, which is effective from 1 January 2014, replaces the previously applicable property tax regime, namely the Annual Property Tax on Real Estate (FAP) and the Extraordinary Real Estate Special Duty (EETA).

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