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The structure of real estate property in Greece
After the clearance of the new property tax (ENFIA), the Ministry of Finance released interesting information regarding the property status of Greeks citizens. More analytically:
- 5,569,336 landlords own property of total objective value €520.49 billion.
- Each one of 4,123,258 landlords owns properties of objective value lower than 100,000€.
- 291,322 landlords should pay an additional property tax, given that their property objective value exceeds 300,000€.
- 27,192 and 492 landlords own properties of objective value higher than €1 and €5 million respectively.
It should be noted that the total value of real estate property in Greece, given plots of land inside and outside city plan, amounts to about € 1 trillion, while the overall burden of property tax (ENFIA) and additional tax is calculated at about 0.3% of the abovementioned value. However, this liability is of particular importance, due to the significant reduction in salaries and the general increase in overall tax burden in recent years.
Moreover, many citizens complain that the property tax is not connected with an income generated by each property and it seems to have been introduced just to cover budget gaps.
To conclude, it is mentioned that several fees in favor of municipalities are also imposed on properties, while many taxes such as capital gain tax and transfer tax are also charged on property conveyance. Therefore, individuals and companies should monitor the changes on property taxation during decision making.