Tax shock: Rude ENFIA awakening for property owners

Omnibus bill provides for an increase of taxes on rents as of January 1, 2015 – to apply retroactively

The Finance Ministry is planning to abolish all exemptions that currently apply as far as the Single Property Tax (ENFIA) for next year is concerned. The notices that 6.1 million property owners are to receive by October 15 will be a rude awakening for many with the first instalment due by October 30.

Changes include:

1. The property tax multi-bill includes taxes on rent money that a home owner may not have received. Until now, the state made allowances for owners who had not been paid rent in cases where tenants did not fulfil their obligations to the landlord.

2. Instead of the government incorporating the money yielded for property into a tax index relative to money earned, the tax yield has been left separate and has been increased with retroactive payments due (15% instead of 11% for under 12,000 euros per annum and 35% instead of 33% for over 12,000).