According to a report by newspaper ‘Imerisia’, the Greek government plans to replace the common property tax (ENFIA) with a hiked VAT property tax. The newspaper reveals that the Finance Ministry is considering scrapping the current ENFIA property tax and introducing a unified propriety tax imposed on all properties both registered and unregistered. Other provisions will include the abolition of property tax per square metre, which is currently in force, with the introduction of a system that calculates the aggregate property value of every taxpayer. This estimation of the new property tax will be calculated on the basis of a progressive rate without the provision of any tax free threshold. The scale rate will include multiple coefficients and property value rates, with the first coefficient to be placed for property valued at 30,000 or 50,000 Euros. The coefficients will follow a graduated rate and increase depending on the value of the total property. According to ‘Imerisia’, the Finance Ministry task force responsible for the new tax has not decided as to what property prices will constitute the basis for calculating the new tax in 2017, as the readjustment of the objective property values to the real market values has been put off till the second half of 2017.
Calculation of new VAT property tax based on total value of property