Bye bye ENFIA property tax! Hello … new acronym: FMP

The government is keeping its promise and abolishing the current property tax regime, but is replacing it with a “large” assets tax on everything totaling more than 300,000 euros

The new Radical Left Coalition (SYRIZA) government, true to its pre-election promise, is planning to abolish the unpopular joint property tax (ENFIA) and replace it with a large assets tax (known as FMP in its Greek-language acronym) on accumulated assets worth more than 300,000 euros.

The large property tax will be estimated according to the value of real estate, money in bank accounts, investments and other assets in Greece and … abroad — bearing in mind that these properties are already taxed in other countries and are often not declared by owners on their Greek tax returns.

Real (currently depressed) market values rather than previously estimated prices will be used in the assessments, or so the pledge goes.

The plan foresees an increase in non-taxable annual income from 12,000 euros to 16,000 euros (for families with two children) and 19,000 euros (for families with three children).

VAT tax will be lowered for basic goods, children’s food, renewable energy sources and items used by people with disabilities. There will be a fresh examination of 700 tax breaks that cost the budget 3.6 bln euros. Added taxes will be slapped on luxury items such as yachts, swimming pools and …helicopters.