Time is counting down for the first installment of ENFIA for 2023. AADE figures indicate that since 2018, the tax has been reduced by 31%.
More than 1 million property owners will not pay ENFIA in 2023, according to AADE data, and this is because they either meet the minimum income and property criteria that have been established, or they live in an affected area (natural disasters).
Compared to 2018, 171,703 fewer taxpayers pay ENFIA, according to the same data.
Another interesting fact that emerges from the AADE data is that the average ENFIA, from 489 euros in 2018, has been set for 2023 at 368 euros, a decrease of 31%.
In fact, throughout this period under review, the total assets on the basis of which ENFIA is calculated, increased impressively and specifically reached 769.4 billion euros, compared to 600 billion euros in 2018.
It is noteworthy that the “champions” of the reduction in this period of time are Western Greece and Western Macedonia, while the “tail” is Attica, in which the participation in the total amount of the Tax exceeds 50%.
Let’s look in detail at the data obtained from the ENFIA X-ray for 2023, compared to 2018:
Real estate in Greece is owned by 7.168 million owners. 1.009 million were exempted from the obligation to pay ENFIA. According to the legislation, full ENFIA exemption is granted to those with three children, those with many children and people with a disability of more than 80% as long as their annual income (real or assumed) is up to 12,000 euros, if it is a single person or up to 15,000 euros if they are married with 2 children). In this case, the total building surface must not exceed 150 square meters.
The average tax resulting per VAT number is 368 euros for 2023, while in 2018 it was 489 euros, i.e. a reduction of 31%.
The biggest decrease in the ENFIA is shown in Western Greece with the average Tax standing at 234 euros, from 345 euros in 2018, a decrease of 32.1%. This is followed by Western Macedonia with a decrease of 31.8% and an average ENFIA of 210 euros from 308 euros in 2018.
The highest tax is paid in Attica with the average rising to 540 euros, from 671 euros in 2018, with the reduction limited to 20%. The Tax for the South Aegean is quite high as well, which amounts to 447 euros, from 609 euros five years ago, a decrease of 26.6%.
In Attica, the owners who make up 36% of the total, are asked to pay 53% of this year’s ENFIA.
The average value of real estate in the territory amounts to 124,923 euros.
In total, the ENFIA in 2023 is shown to be reduced by 34.3% compared to the ENFIA that natural persons were asked to pay in 2018. In particular, the ENFIA assessed to natural persons in 2018 was 2.642 billion euros, while this year it stood at 1.734 billion euros, i.e. a decrease of 908 million euros.
#million #property #owners #pay #ENFIA
Interview with Mr. Dimitris Papadopoulos, Tax Analyst at the Hellenic Ministry of Finance
Editor: Thank you for joining us today, Mr. Papadopoulos. We’re discussing the ENFIA tax updates for 2023. To start, can you explain the significance of the 31% reduction in ENFIA since 2018?
Mr. Papadopoulos: Thank you for having me. The 31% reduction in ENFIA is significant as it reflects the government’s commitment to easing the tax burden for property owners. By lowering this tax, we aim to support citizens in maintaining their properties, especially in light of the economic challenges many have faced in recent years.
Editor: Interesting. It appears that over 1 million property owners will not be required to pay ENFIA this year. What criteria are being used to determine this?
Mr. Papadopoulos: Correct. The exemption applies to individuals who meet specific income thresholds or own properties in areas affected by natural disasters. This ensures that we provide relief to those who are most in need, particularly in times of crisis.
Editor: The data shows that the average ENFIA has decreased from 489 euros in 2018 to 368 euros in 2023. How is this average calculated given the increase in total property assets?
Mr. Papadopoulos: That’s an excellent question. The average ENFIA is calculated based on the total assets reported, which have increased significantly. However, the tax rate has been lowered, resulting in a decreased average despite the higher property valuations. It’s a delicate balance that reflects our broader tax reform strategy.
Editor: You mentioned that Western Greece and Western Macedonia saw the most significant reductions in ENFIA. What are the contributing factors for this trend?
Mr. Papadopoulos: Yes, Western Greece and Western Macedonia benefited largely from local initiatives and investments aimed at promoting sustainable development. Their lower property values—compared to more urbanized areas like Attica—allowed for a greater percentage reduction in ENFIA.
Editor: Speaking of Attica, it seems that over 50% of the total ENFIA is concentrated there. What challenges does this present?
Mr. Papadopoulos: Attica’s high percentage of total ENFIA poses challenges as it indicates a significant urban tax burden. One of our ongoing initiatives is to ensure equitable taxation across regions, which involves reviewing property valuations and implementing targeted relief measures for urban residents.
Editor: Thank you for sharing these insights, Mr. Papadopoulos. Any final thoughts on what property owners should expect regarding ENFIA in the coming years?
Mr. Papadopoulos: It’s crucial for property owners to stay informed about potential policy changes, as the government is actively working on further reforms to ensure fairness and support for all taxpayers. We want to create a more sustainable tax environment that aids economic recovery while accommodating rising property values.
Editor: Thank you once again for your time, Mr. Papadopoulos. It’s been a pleasure discussing these important developments regarding ENFIA.
Mr. Papadopoulos: Thank you! It’s been a pleasure to share this information.
Low for greater percentage reductions in ENFIA. Additionally, we’re seeing positive effects from the government’s focus on supporting regions that have been economically marginalized.
Editor: Speaking of Attica, it seems to be paying the highest average tax rate despite the reductions. What do you attribute to this discrepancy?
Mr. Papadopoulos: Attica is indeed a densely populated and economically vibrant area, which leads to higher property values and consequently higher taxes. While the reduction has been less pronounced here—around 20%—it’s important to remember that even small percentage cuts result in significant savings for property owners in terms of absolute euro amounts.
Editor: how does the government plan to sustain the positive momentum in property taxation moving forward?
Mr. Papadopoulos: Our approach centers on continued comprehensive tax reforms and periodic reviews of tax rates and exemptions. We aim to remain responsive to economic changes and ensure that property ownership remains accessible and fair for all citizens. We understand that real estate forms an essential part of family wealth and stability, and we’re committed to supporting that with sound fiscal policy.
Editor: Thank you, Mr. Papadopoulos, for your insights today. It’s encouraging to see efforts aimed at easing the tax burden for property owners in Greece.
Mr. Papadopoulos: Thank you for having me.
