The Finance Ministry’s committee that aims to align the wide gap between the “objective” property values used for tax purposes and the actual market prices will be unable to adjust these to current values within the six-month deadline that had been set. The Finance Ministry states that 10,000 price zones around Greece will need to be examined. Sources also state that a number of areas where the price zone is from 500-800 euros per square meter, the price would need to be increased. The readjustment of prices by 30% would also limit the revenue from the joint property tax ENFIA by 900 million euros as the tax is calculated according to objective values.
The cost of buying property in Greece
The value of property in Greece is separated into the real value (expectation of the seller and set according to demand) and the objective value that is based on the criterias set by the inland revenue authorities for a certain period of time and for certain places. The economic crisis in Greece has caused the objective value prices to be much greater than the real value.