New ENFIA for 2022 prepares the financial staff of the government, with new steps, new rates of calculation of the basic tax, bigger discounts, more installments and taxation of each property separately. The above should include the new tax reduction, at rates possibly higher than 8% on average. For some property owners the reduction can reach 15% -20%, while for all it will be marginal or at the same levels as today. At the same time, the new planning should include the new integration (apart from the 3,643 areas that joined in the summer) of 1,300 areas, even in the area of Athens.
However, the 18-member committee that has undertaken the creation of the new ENFIA is facing problems that force the financial staff to postpone the submission of the bill to Parliament with all the changes. The most important problems are located in the integration of the supplementary ENFIA in the main tax, as well as in the taxation of the new areas that are included for the first time in the system of objective determination of the value of the real estates.
Specifically, there is an impossibility of creating the new calculation scales, as, according to competent sources, it is difficult to integrate the additional ENFIA (imposed on properties worth more than 250,000 euros) in the main tax. Essentially, what is being attempted is for the rates to increase for properties over 250,000 euros. The higher the value of the property, the higher the rate will be, so that the amount of tax is maintained at the same levels as this year.
The second problem concerns the new integration of regions, where the models used in some cases lead either to very high prices or to sub-taxation. According to ministry sources, enough time is needed for the committees to reach the final tax that will not lead to over-taxation, while maintaining the tax reduction by 22% on average carried out in 2019.
The changes in ENFIA
1. New scale for calculating the basic tax. The task force elaborates various scenarios with more scales and factors, in order to prevent the large burdens that arise for those with small and medium-sized assets after the increase in fair values. The new ENFIA will return to the Greek State 2.5 billion euros, as much as the ENFIA of 2021. The amount is likely to be reduced to 2.3 billion euros, if a budget space of 200 million euros is created for the reduction by 8% tax averages.
2. ENFIA discounts. Discount rates start at 30% for those with assets up to 60,000 euros, are limited to 27% for those with assets from 60,000 to 80,000 euros and at 25% for those with assets from 80,000 to 100,000 euros. From 100,000 euros up to 1 million euros, a 20% discount is valid, while from 1 million euros and up, the discount is limited to 10%. The discount rates are planned to increase from 2022, in order to zero the burdens that will arise from the adjustment of the objective values to the owners with small and medium real estate.
3. Many landlords will pay reduced tax after the tax burden is redistributed. That is, the owners who own many properties of small value, of the order of 50,000-100,000 euros each, will see the ENFIA account decrease next year, due to the merger of the additional property tax with the main tax. On the contrary, ENFIA for the owners of high value properties, over 250,000 euros each, based on the new objective values and especially for the owners of real estate in areas that joined for the first time in the objective system, will be higher, but will not exceed for most homeowners the amount they pay today.
4. From the new year, the main and additional tax will be calculated for each property separately, based on a new unified scale with more rates compared to the current regime, which will increase depending on the zone price of the area where the property is located. and its value.
5. The 50% and 100% reductions for vulnerable social groups are maintained.
6. ENFIA will be paid in 9 or 10 installments, from May or June to February. In order to pay the real estate tax in 10 installments, the payment of the first installment should be made by the end of May at the latest. The amount of 2.5 billion euros that the Greek State receives annually from ENFIA will be broken into 10 installments of 250 million euros per month.
7. The additional tax for companies is not abolished. The 68,652 companies will continue to pay the additional tax in 2022.
8. The age ratios of real estate change. The aim is to remove the distortions created by the exhaustion of the age ratio of objective values at 26 years, beyond which the value of real estate is no longer impaired. That is, whether the property is 70 years old or 25 years old, the taxable value is the same.
9. Changes in trading rates as well. The serious problems identified with the commercial value factors of objective values, which have remained the same for the last 40 years, will end, according to the Ministry of Finance.
10. The relevant procedures for zoning have started at the Ministry of Finance and, as they report, by 2022, 1,300 new areas will be included in the system of objective determination of the value of real estate. Upon completion of the mapping, certified appraisers will be called in to determine the zone prices, which is expected to happen in mid-2022.
Source From: Capital