Finance Ministry working on property tax revisions

The Finance Ministry is planning a new real estate tax scheme aimed at replacing the controversial single property tax ENFIA that had been introduced by the previous government. Ethnos daily newspaper states that the new tax system will have a low tax limit for property under 50,000 euros and will rise according to the price of the property and family situation of the owner. The new system will adjust objective values so that they are closer to real values and will not concern the primary residence.

According to the new system, an estimated 2,800,000 property owners from 5,570,000 will not have to pay the preoperty tax. Sources from the Finance Ministry state that the exact level of the non-taxable property amount and the index concerning the actual tax amounts will be definited until June.

In most regions, the readjustment of the property tax could bring reductions worth 15-20% that would automatically lead to an avalanche of other tax reductions, such as property transfer tax, inheritance tax, etc.

The finalized changes to the property tax will be presented at the second semester of 2015.