ENFIA: Two “cutters” for its abolition in 12,720 settlements

A two-cutter alleviation measurement starring to the repeal of the ENFIA tax successful 12,720 small settlements crossed Greece is being implemented. The archetypal cutter envisages that each settlements successful the Region of Attica are exempt, with the lone objection being the Regional Unit of the Islands. The 2nd cutter concerns the worth of the property: if the taxable worth exceeds 400,000 euros, the proprietor is not entitled to immoderate deduction, adjacent if the location is located successful a colony with a colonisation of little than 1,500 inhabitants.

The proviso of these 2 filters prevents the measurement from becoming a taxation “gift” for luxury properties. The statement heated up instantly aft the announcement, arsenic immoderate believed that tourer destinations with tiny populations, specified arsenic Platys Gialos successful Mykonos with 317 residents oregon Oia successful Santorini with 477, could flight the tax.

In practice, however, the prices of properties determination commencement from 4,000 to 7,000 euros per quadrate meter, with the effect that adjacent a tiny location is valued astatine implicit fractional a cardinal euros. Villas with swimming pools and luxury residences that predominate the Cyclades volition spot nary relief, arsenic they transcend the 400,000 euro threshold and their owners volition proceed to wage ENFIA, with a surcharge adjacent erstwhile their full spot exceeds 500,000 euros.

Instead, the existent beneficiaries are the owners successful thousands of tiny villages and towns successful the province. From 2026 they volition spot their ENFIA reduced by 50% and from 2027 they volition beryllium wholly exempt, arsenic agelong arsenic it is their main residence and they are registered arsenic taxation residents of Greece. This does not see vacation homes oregon secondary residences, nor residences of ineligible entities.

The measurement is based connected the 2021 census, which identified which settlements person little than 1,500 inhabitants and are frankincense included successful the regulation.

According to estimates by the Ministry of Economy and Finance, the fiscal outgo of the afloat exemption is estimated astatine astir €75 cardinal per year. The magnitude is considered comparatively debased compared to the full gross from ENFIA, which exceeds €2.3 cardinal per year, and was truthful considered manageable. It is estimated that astir 1 cardinal properties volition payment from the exemption, giving a important boost to families surviving permanently successful the portion and facing the precocious outgo of living.

The implementation is being done successful 2 phases to debar creating a fiscal shock. First volition travel a 50% simplification successful 2026 and then, from 2027, the afloat exemption. In this way, the authorities is signalling enactment to tiny villages and their imperishable residents, seeking to halt colonisation shrinkage and heighten determination cohesion.

At the aforesaid time, however, with the 2 cutters it sends the connection that the regularisation is not for the haves and have-nots connected luxury islands oregon successful Attica, but for residents who unrecorded permanently successful tiny villages and person little spot values.

In this way, the authorities is attempting to equilibrium the request for societal enactment with the request to support taxation fairness. For households crossed the state that volition spot their ENFIA reduced and yet zeroed out, this alleviation volition mean a important boost to the household budget. For areas with excessively precocious values, the 2 cutters support the measurement targeted, preventing immoderate accidental of it appearing arsenic a acquisition to the powerful.