After some lengthy discussions in the Greek Parliament, the publication of the individual accounts of the real estate tax (ENFIA – changes ENFIA) and the additional tax for those who have properties with a total value of more than 300,000,-Euro started today, on August 1, 2014 via the online system of the greek ministry of Finance (gsis.gr) . The post will be sent simultaneously on the personal accounts of property owners with the adequate payment plan.
The tax will be paid off in five installments, the first of which will be paid latest by the end of August, and then the last must be paid in December of this year.
The calculation of the ENFIA and the additional tax is made on the basis of the area sizes that were notified by the owners in the tax formular E9. It should be noted that the netportal of the Ministry is since the 07/30/2014 no longer open for explanations and it will be opened again after delivering all notifications. This application will open in order to correct any mistakes.
Because of this new decision which was adopted by the Greek Parliament, the opportunity for the correction or modification of the tax formular E9 for the year 2014 is provided. The adequate changes must be made no later than 30 November 2014. If a difference is detected, the exceeds the sum of 300, – EUR, there will be a review by the responsible office.
For individuals the current decision stipulates that you can make the correction for the years 2011, 2012 and 2013 without further punishment until 30 November 2014. If, however, there results a repayment, the propertz owner has to pay a penalty fee of 100, – Euros for the “late tax declaration”. Legal persons have the option to subsequently modify their immovable property in the E9 form. However, they must have declared their properties on January 1 in each of the years 2011, 2012 and 2013 through the electronic system of the Ministry. For these cases, November 16, 2014 deadline is considered.
Beyond the changes that are mentioned above, the new decision also provides – among other things – even changes in the calculation of tax for land, as well as special provisions for the case of inheritance.
More concretely, these are the main changes:
- It was supplemented a scheme, whereby the deadline for modifying the tax formular E9 in the case of an inheritance begins 30 days after expiry of the period of acceptance of inheritance.
- For each change in the real estate property, which takes place from 1 January 2014 to 31 August 2014, the modification of the form E9 must take place no later than 30 September 2014.
- As land utilization factor (SAO), which is scheduled for the calculation of the taxable value, the factor is set according to the basis of the decisions of the “objective” values, regardless of the building factor of the region.
- For the determination of the taxable value in the case, where there are no “objective” values for the region in which the property is located, the lowest value of the periphery is applied.
- It will set a new system for the determination of the taxable value for special categories of land. In particular, the SAO factor shall be as follows:
- For plots that are in regions where two or more SAO-factors apply, and where due to lack of accurate location information the assignment is not clearly possible, the smaller SAO factor is applied.
- For plots that are in regions that are included in the “objective” system for determining the value of land since 2011 and for which there is no SAO factor, the value 0.6 is used.
- For plots in which the SAO factors is influenced by various factors, it will be calculated case by case basis in the favor of the property owner .
According to the changes in ENFIA that have taken place in favor of the taxpayer, and because the proposed payment policy, the Greek Finance Ministry expects to reach until the end of 2014 a tax income of about 2.65 billion Euros. Over the next five months each property owner will pay the property tax that corresponds to him. This means that one must really put his hand deep into his pocket in the near future.
For any clarification, we remain at your disposal. Contact us here (contact Mavvidis + Partners).