What is the ENFIA Property Tax in Greece?
ENFIA came out in 2014 through Law 4223/2013. It is applied in each subsequent year after 2014 and it is a Uniform Real Estate Property Tax (ENFIA) which applies to all real property located in Greece.
The tax is applied to individuals, legal entities and other entities and is applied on the 1st of January each year. ENFIA doesn’t only cover the different types of real estate tights, such as full ownership, bare ownership and surface rights, but also exclusive use rights for parking spaces and other areas such as swimming pools.
When you purchase a property, you will need an E9 form. This form details the real estate that is owned, and enables you to calculate and ENFIA assessment – the taxable amount. There are two components of the tax: the main tax and the supplementary tax.
What is the main ENFIA TAX?
This is a tax that is calculated based on criteria such as the property location, area, use, age, floor level and other information. It generally ranges from €2.5 to €16.25 per square meter depending on the factors. This is critical as when purchasing property (for example a home) in Greece, you nee to check the ENFIA tax payable so you don’t have any nasty or unexpected surprises. A penthouse and a first storey apartment in the same building can have very different main tax amounts even though they are in the same location.
What is the supplementary tax?
The supplementary tax only applies to legal entities. It is 5.5% of the property value – a substantial amount. It is decreased to 1% if the owner of the property uses the property for business purposes. For example, if a plumbing company uses a warehouse to store their plumbing supplies and service clients then it is 1%.
When you are purchasing a property, there is also a property transfer tax which is applied with the purchase. This is 3.09% – although there are some exemptions and deductions depending on your age and income.
You will receive notification online through the Independent Authority for Public Revenue (AADE). It’s important to note that when purchasing a property, or even owning a property, ENFIA (and other taxes apply) and this needs to be calculated in your overall budget and decision making. I.e. a property which costs 250,000 euro, can end up costing you 275,000 euro when you consider the taxes that need to be paid with the property transfer.
When do I have to pay the ENFIA TAX?
Once the ENFIA tax bill is issued, you have two choices. You can pay it via a lump sum by the end of the month that you received the tax assessment. Alternatively, you can pay it in ten monthly instalments.
When purchasing a property, in order to transfer the property (which is part of the sales process), the owner needs to provide an ENFIA certificate which confirms that the ENFIA and all other taxes have been paid for the past tax years and there are not other debts to the tax department. In other words, it’s a clean property with no debts and everything is paid up ready for the new owner. The Notary Public will ensure this is all correct.
What do I need to do to get an ENFIA assessment, so I know what I have to pay?
You will need to follow the below steps in order to attain an ENFIA assessment:
- Purchase, inherit or already own real estate property in Greece.
- Submit your E9 form. You will need to submit this form when you acquire the property. You can do this online through the AADE portal. You will need to be registered on the AADE website to do this. If you haven’t already registered, then register your details.
- Complete the E9 Form. When you submit the form, you will need to provide details about your property. This includes information such as it’s location, age, floor level and other information. It needs to be accurate as this information will be used to calculate how much ENFIA tax you need to pay.
- Once you have submitted the E9 Form, the system will calculate how much you need to pay.
- You will receive a Tax Assessment Notification. This will come through email and AADE. It will include the details of your tax assessments and will also detail the total main tax and the supplementary tax that has been applied.
- Pay the ENFIA. As discussed above, you can pay it by lump sum or in instalments. Either way, when you receive the tax assessment it needs to be paid.
Get in touch with our team if you would like to speak to one of our accountant partners and get assistance with your ENFIA tax payment. We generally recommend getting our team involved at the early stages of purchasing a property so you can get all your ducks lined up in a row.
General comments about ENFIA
If you are from overseas and purchasing a house in Greece, you may already be use to paying property taxes similar to ENFIA. When you talk to local Greeks, ENFIA is a bit of a sensitive topic. The reason is because it was introduced as a tax during the financial crisis. There are many Greeks who have had to sell properties, simply because they don’t have the cash flow to pay for the ENFIA. When you compare it to the value of the property, it isn’t a large amount however it’s something that we recommend all our clients be aware of and budget for.
If you are purchasing ultra-high end property which many of our clients do, then the ENFIA tax calculated can be substantial. This is also the case for people purchasing ‘houses’ in desirable locations, compared to apartments.
Our tax team helps expats understand ENFIA and the other taxes that apply when purchasing or owning property in Greece so there are no surprises.
Talk to our team today for help with your ENFIA tax obligations.
Client testimonials
Thank you for your help with all the ENFIA stuff. Yes it’s pretty simple, however there is always a little complication. This time it was the insurance and the associated discount, plus we were late in payment for our ENFIA. Your accounting partners helped us get everything soughted out and it was great. Thanks for your help.
Ron B | Athens and Paros Apartment Owner | Greece and Bristol
Tsaks Consulting are excellent when it comes to knowledge and understanding of ENFIA. I was looking to purchase a high-end property and hadn’t even included ENFIA in my initial calculations. The team drew this to my attention and enabled me to make a more education home purchasing decision. Thanks Tsaks Consulting – you are the best.
Bryan P | Property Investor | Athens and Boston