The government’s radical change in the way property is taxed from next year paves the way for new tax breaks for a large category of property owners. Yesterday a top Treasury official estimated that there was scope for a new reduction in ENFIA and other property taxes next year.
These margins are mainly created by the integration into the objective system of new areas as well as by the equation of objective with commercial prices.
Exercise with the new objective values to be set in real estate across the country will be completed in May 2020 and depending on the outcome it will show whether there is scope for further lowering the tax rates on real estate. ” I feel there will be fiscal space ” from this exercise, the Treasury official said , assuring that there would be no immediate change to the reductions already made.
On the merits the inclusion of approximately 7,000 sites in the system object of determining the value of real estate is estimated to generate revenues of 400-500 mn. Euros , a sum which is completely unrealistic said finance ministry sources. It is indicative that a villa of 550 sq.m. Mykonos sells for 3.5 million euros, while ENFIA is only 1,010 euros a year .
The additional revenue generated by the new memberships will be used to reduce the burden :
- In inheritances and parental benefits . It will consider raising the tax-free threshold to the relevant scale which currently stands at EUR 150,000 or otherwise reducing the scale rates.
- On the scale of the Enfia Supplementary Tax . Interventions on the scale are examined by increasing the tax free and reducing the rates.
- On the scale of ENFIA . The revaluation of objective values will in some cases lead to an increase in ENFIA . In order not to lose 22% of this year’s average EFIA reduction, the necessary adjustments will be made so that the 2020 tax remains at least the same level as 2019.
The revaluation of objective values aims to close the gap between commercial and objective values . Based on current data candidate increases are the neighborhoods of Athens as the Exarchia, the Hive, the Ambelokipi, the Ilisia, the Pangrati, and the Cadets . Increases are also expected in several suburbs like Maroussi, the Greek, the Halandri, the Glyfada. In addition to the above areas, upward adjustments are also expected in many of the country’s 4,132 areas, where the previous government decided last June to keep prices at the same level so as not to burden ENFIA.
Large deviations are also recorded in the more expensive suburbs of Attica . In Paleo Psychiko , despite the decline, the gap remains at almost 30% , at Ekali at 37% and at Filothei at 43.5% . This picture illustrates the decline in values in these areas, precisely as a result of their over-taxation and of course the other factors that have affected the real estate market over the last decade (recession, high unemployment, lack of financing and a decrease in purchasing power). of the households.
Treasury sources say the design also foresees changes in the way values are calculated as significant distortions are observed. For example, another price is applied to enforce ENFIA and another to calculate transfer tax , that is, a property is taxed differently if it is to be sold and otherwise if it remains in the possession of its owner.
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