What is the ENFIA Property Tax in Greece?
ENFIA was introduced in 2014 through Law 4223/2013 and is now governed by the applicable provisions of the Greek Property Tax Code. It is applied each subsequent year and is a Uniform Real Estate Property Tax (ENFIA) which applies to real property located in Greece.
The tax applies to individuals, legal entities and other entities and is assessed based on property ownership and relevant rights as at 1 January each year. ENFIA doesn’t only cover different types of real estate rights, such as full ownership, bare ownership, usufruct and surface rights, but can also apply to certain exclusive use rights for parking spaces and other areas such as swimming pools.
When you purchase a property, you will generally need an E9 property declaration, although this may be generated automatically for certain transactions. This form details the real estate that is owned and enables the Greek tax authorities to calculate your ENFIA assessment – the taxable amount. There are two main components to consider: the main tax and any applicable additional 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. The applicable rate varies depending on these factors. This is critical, as when purchasing property (for example, a home) in Greece, you need 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 ENFIA tax generally applies to legal entities. The standard rate is 5.5‰ (0.55%) of the relevant taxable property value, rather than 5.5%. It may be reduced to 1‰ (0.1%) where the applicable business-use requirements are satisfied. For example, if a plumbing company uses a warehouse to store its plumbing supplies and service clients, a reduced rate may apply, depending on the circumstances.
For individuals, the supplementary tax was replaced by revised ENFIA calculations, including additional tax provisions for certain higher-value property holdings.
When you are purchasing a property, there is also a property transfer tax which is applied to the purchase. This is generally 3.09%, including the municipal levy, although there are some exemptions and reductions depending on the applicable legal requirements.
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 may apply, and these need to be calculated in your overall budget and decision-making. For example, a property which costs €250,000 can end up costing you substantially more when you consider the taxes, notary fees and other expenses associated 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 in a lump sum by the applicable payment deadline. Alternatively, you can pay it in up to ten monthly instalments, according to the payment schedule issued by AADE. The final instalment is generally due by the last working day of February of the following year.
When purchasing a property, in order to transfer the property (which is part of the sales process), the owner generally needs to provide an ENFIA certificate which confirms the relevant ENFIA declarations and tax compliance for the required previous tax years. This is an important part of the property transfer process, although it does not certify that every possible debt or liability associated with the property has been cleared. The Notary Public will ensure the required documentation is checked.
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 steps below in order to obtain an ENFIA assessment:
- Purchase, inherit or already own real estate property in Greece.
- Submit your E9 form. You will generally need to ensure the relevant E9 declaration is submitted when you acquire the property or your property details change. You can do this online through the AADE portal. You will need to be registered on the AADE website to do this. For certain property transactions, the E9 declaration may be generated automatically through the myPROPERTY system.
- Complete the E9 form. When submitting the form, you will need to provide details about your property. This includes information such as its 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 the relevant E9 information has been recorded, the system will calculate your annual ENFIA assessment based on the property rights held on 1 January of the relevant tax year.
- You will receive a Tax Assessment Notification. This will be available through myAADE, and you may also receive an email notification. It will include the details of your tax assessment and the total main tax and any additional tax that has been applied.
- Pay the ENFIA. As discussed above, you can pay it in a lump sum or in instalments. Either way, when you receive the tax assessment, it needs to be paid by the applicable deadlines.
Get in touch with our team if you would like to speak to one of our independent 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 used 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 necessarily 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 consultancy team works with independent tax and accounting partners to help 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 coordinating assistance 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 paying our ENFIA. Your accounting partners helped us get everything sorted 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 educated home purchasing decision. Thanks, Tsaks Consulting – you are the best.
Bryan P | Property Investor | Athens and Boston
Important Clarification
Tsaks Consulting Greece is a business consultancy, not a law firm or accounting practice. We provide consultancy, administrative assistance and coordination services and work with independent accountants, lawyers and other qualified professionals who provide specialist tax, accounting and legal services.
ENFIA calculations, exemptions, rates and payment requirements may change and depend on individual property circumstances. The information provided is general in nature and does not constitute personalised tax, accounting or legal advice.