The new objective values for properties, ie the property rates used for tax purposes, were set based on a ministerial decision signed on Tuesday and will be retroactively applied as of May 2015, as the Ministry of Finance announced.

Based on the ministerial decision, for almost one out of two properties a new reduced objective value of 5% to 19% will be applied, since the government decided to not change the objective value of properties with price band up to 650 euros per sq. meters and very expensive properties with objective value over 4,050 euros per sq. meters.

The ENFIA tax for 2016 will be calculated based on the new objective values and given the fact that government wants to ensure  2.65 billion euros for this year, increases in the tax rates are expected affecting mainly the owners of medium and high value properties. Therefore, even though the objective values will be reduced, that doesn’t mean that they will pay less for ENFIA tax.