Ch. Staikouras: Most Greeks will pay even less ENFIA

Most citizens will pay even less ENFIA this year, according to what the Ministry of Education and Science, Mr. Christos Staikouras, stated today at the 39th Panhellenic Congress of POMIDA.

The number of real estate transactions is estimated to record a positive pace in 2021, according to what he said.

He stressed that the current Government, from the beginning of its term, recognizing the market value of real estate, has implemented and is implementing, consistently and effectively, a comprehensive, coherent and dynamic plan for its strong recovery.

At the same time, it proceeds, with coordinated initiatives and targeted actions, to the utilization, in the optimal way, of the public real estate.

In particular, Mr. Staikouras stated that:

1st We implemented tax rate reductions and introduced tax incentives. Specifically:

– We reduced ENFIA – on average – by 22% from 2019.

At the same time, we have enacted its abolition in small island islands, as well as in areas affected by natural disasters, as a support measure.

And, indeed, the Government is proceeding immediately with a courageous reform of ENFIA, which combines economic efficiency and social justice.

Objective values ​​are adjusted, new areas are included, zones of objective determination of real estate value are expanded, the rates of determination of the basic tax are significantly reduced and the additional tax is incorporated in it.

In this way, it is entirely possible for most of our compatriots to pay even less ENFIA, permanently, from 2022, in a more socially just way. Announcements in the coming weeks.

-We suspended for three years, until the end of 2022, the VAT on newly built properties and for the same period we suspended the capital gains tax.

-We suspended the payment of VAT in the context of investments for construction works carried out by hotel companies, in order to address the emergencies that arose due to the measures imposed to stop the spread of coronavirus.

-We introduced a tax deduction equal to 40% of the cost for the energy, functional and aesthetic upgrade of existing buildings.

-We abolished the tax on parental benefits / donations for first degree relatives, which concerns values ​​up to 800,000 euros, for the strengthening and utilization, among others, of the real estate market.

-We have introduced tax incentives for foreign natural persons, in order to choose Greece as a place of tax residence and to invest, among other things, in the real estate market.

In the few months of implementation of these provisions, a total revenue of 9.4 million euros has flowed into the public coffers, with the final approval of applications from 75 investors and 23 relatives from 21 countries, while significant revenues are expected due to the large number of applications for the measure. both foreign retirees and employees and the self-employed.

-We have streamlined the way in which investment companies are taxed, such as Real Estate Investment Companies, under conditions comparable to the corresponding framework of other European countries.

2nd We have completed the first phase of reforming the framework for determining the fair values ​​of real estate.

With this, the system of objective identification zones has been expanded, weaknesses, gaps and injustices of the past have been corrected to the detriment of many landlords, the taxable base is widened and, as I mentioned above, the fairer distribution of tax burdens on real estate will be possible.

In addition, a digital map of the system for displaying the zones of the objective determination of real estate values, available to the citizens.

It is noted that in the previous days a two-month extension was given, until March 31, 2022, for any kind of transfer contracts with the previous objective values ​​of real estate.

With these actions we immediately addressed an issue that was of great concern to property owners.

3rd We promote reforms that strengthen the real estate market in our country.

-We have modernized the procedures for the transfer of real estate, so that they can be done electronically, instead of the submission of printed declarations with the personal presence of the taxpayers to the competent Tax Offices.

-We have established clear and transparent rules for the establishment and operation of family offices for the management of cash flows and family property of individuals with tax residence in Greece, through which the real estate market in our country is strengthened.

– We proceeded to the integration – from 2022 and for 3 years – of selected expenditures related to green economy, energy and digitization, contributing to the strengthening of the real estate market.

4ον. We laid the foundations for large investment projects to “come off” and for the implementation of the privatization program to proceed.

Specifically:

– We managed, with intensive and methodical effort, overcoming obstacles and overcoming anchorages, to complete the transfer process of “Ellinikon SA”, putting on track the implementation of this emblematic project.

– We proceeded to the concession of “Egnatia Odos” with satisfactory terms and completed the concession of the marina Alimos, the marina of Chios and the property Golf – North Afandou in Rhodes, which paves the way for the implementation of a tourism development project for the entire region.

-The development of regional ports and marinas of the country is underway, while the tender was completed, with the emergence of a preferred investor, for Gournes in the Prefecture of Heraklion.

Finally, in collaboration with the Hellenic Holdings and Property Company, a holistic strategic plan is launched to record and value the value of public real estate, with the aim of protecting, managing and investing it.

He said that the above are the main pillars of government policy to support, stimulate and promote private and public real estate.

The effectiveness of this policy is reflected in the improvement of a series of indicators which – as the Bank of Greece states in the Interim Monetary Policy Report – reflect the positive dynamics of the residential real estate market in 2021, as well as the improvement of our country as an investment destination. for real estate.

In particular, the construction activity records high annual growth rates of the number and volume of new building permits (25.9% and 47.6% respectively) in the ten months of 2021, while net foreign direct investment in real estate shows a steadily increasing trend, gradually returning to pre-pandemic levels.

In addition, investment in housing continued to strengthen in 2021, at a significantly high annual rate and business expectations for housing construction, as reflected in the relevant IOBE index, increased significantly in the eleven months of 2021 (47.1% compared to the corresponding eleven months of 2020).

Finally, the number of real estate transactions is estimated to record a positive pace in 2021.

Regarding the purchase of commercial real estate, based on the price indices of the Bank of Greece, positive rates of change were recorded – during the first half of 2021 – with the investment interest for commercial real estate appearing renewed.

All this and given that the economy has entered a course of recovery, show that the Greek real estate market is expected to continue to grow in the coming years.

Of course, there are obstacles that can stop this process, he noted.

Obstacles that are not limited to the evolution of the pandemic, but are strongly related to the rise in prices due to the energy crisis, but also the lack of manpower in construction work.

From our side, stressed the Ministry of Finance, we are determined to continue to take all necessary initiatives that will strengthen the real estate market and promote the utilization of public property.

The proper utilization of the resources from the Recovery Fund and the NSRF programs will play an essential role in this effort.

The results of these efforts will have multiplier benefits and will contribute significantly to the shift of the Greek economy to a new productive and development model, based on high value-added products and services, in sectors and sectors where our country has comparative advantages.

He stressed that this policy can provide significant, stable and long-term revenue for the Greek State, reduce the amount of debt and contribute – decisively – to the development dynamics of local communities and the Greek economy as a whole.

In this joint effort, bodies such as POMIDA are useful and productive interlocutors, with a significant contribution to the formulation of economic policy in the field of real estate market, he concluded.