Two new property taxes are scheduled to burden owners in Greece as of 1.1.2027. The burden on owners is estimated to be up to three times the current charge.
These two taxes are one for the municipalities and one for the Regional governments.
The taxes are to be collected through electricity bills. If they won’t be paid for three months, the electricity supplier will cut the connection.
The property owner will pay these taxes to the tenants.
The government of Kyriakos Mitotakis has already uploaded the relevant bill for public consultation since May 20 and it already causes strong reactions from property owners and market operators.
The most basic element of the plan is that two separate charges are provided for: the new Local Development Fee (TTA) and the new Regional Development Fee (RDF).
According to what is foreseen so far, both fees will be calculated based on the square meters of the property, the zone price and the age of the property, while they will be integrated into the electricity bills.
The first fee, namely the Local Development Fee, comes to replace the existing TAP and the tax on electrified premises. However, the new rates are increased, as they are expected to range from 0.3 to 0.7 per thousand, compared to 0.25 to 0.35 per thousand currently in force.
Based on the examples presented, for a 100 square meter apartment in Kypseli with a zone price of 1,500 euros per square meter, the annual burden from this fee is estimated to range from 45 to 105 euros per year, depending on the rate that will be applied.
At the same time, the Regional Development Fee is being introduced for the first time, which is characterized as a new source of revenue for the Regions, with the aim of financing projects, infrastructure, regeneration and interventions at the local level, especially in island and burdened areas.
For this new fee, the rates are expected to range from 0.15 to 0.35 per thousand. In the same example of an apartment in Kypseli, the additional annual charge is estimated to be between 22 and 52 euros.
Overall, owners who will be included in the higher scales may see the charges reach even 150 euros per year, an amount that corresponds to up to three times the charge compared to what is currently paid through TAP.
Particular concern is also expressed about who will practically pay the fees, as these will appear on electricity bills, which are often issued in the name of the tenant. Although the burden concerns the property owner, it is estimated that disputes and practical problems will arise in leases, especially in the cases of standing bank orders and electronic payments.
The plan also provides that the fees will be imposed on a wide range of properties, such as buildings inside and outside the plan, plots of land in settlements, and even the air (right of elevation).
At the same time, representatives of property owners, including the Association POMIDA, are expected to request reductions in the rates during the public consultation, arguing that the tax and financial burden on real estate is already particularly high.
It is noted, however, that the plan has not yet been legislated and there may be changes before its submission to Parliament and its final vote.
PS Introducing new, additional property taxes in the year of parliamentary elections is equal to a “political suicide.”
Furthermore, the implementation of property tax ENFIA introduced during the first bailout agreement in 2011, very quickly proved that it was a grave mistake.
The only reason that Mitsotakis dares to raise taxes regardless of ability to pay, at the same time that the State has a massive budget surplus through overtaxation (primarily, outrageously high VAT) is that the Left is in total disarray. He is counting on having a monopoly of political for many years to come.
Well, from a Corfu perspective, let’s hope the money gets spent on things that the area needs – a clean regular water supply (six weeks without water each of the last two summers / have to clean tap filters every two weeks); repair of roads (mostly just a series of potholes here in the south west), etc etc. But I am not holding my breath!!
right, don’t it. nobody believes they’ll do anything substaincial
So they are reducing ENFIA, this year mine was almost half last year’s charge, and immediately imposing 2 new taxes? Truly the Lord giveth and the Lord taketh away.
Amen
I do’t think I would cry over a couple of hundred euros a year when you compare that to local taxes elsewhere in europe. I left the uk many years ago but even then the local taxes were over 1000 a year and now are near 2000 from any people, and the water supply still is bad, the roads are full of potholes and the bins are emptird once a week if you are lucky