Tax reductions, including cuts to the Uniform Real Estate Property Tax (ENFIA) and 19 other taxes affecting property ownership and acquisition are expected in the first months of 2025 for 35 zones across 12 municipalities in Greece. The reductions will result from forthcoming ministerial decisions that will lower the objective zone values, which serve as the basis for calculating taxable property values in these areas.
The 35 zones
Following the acceptance of objections raised by mayors, adjustments will be made to the objective values established in 2021 for 35 zones across 12 municipalities nationwide.
These reductions, set to take effect in 2025, will apply to the following zones:
- Zone ST’ in the Municipality of Vrilissia
- Zones IE’ and ITH’ in the Municipality of Chalandri
- Zone A’ in Agioi Anargyroi, Municipality of Agioi Anargyroi-Kamatero
- Zones B’ and C’ in Kamatero, Municipality of Agioi Anargyroi-Kamatero
- Zone E’ in the Municipality of Glyfada
- Zones E’, Z’, TH’, I’, IA’, IB’, IC’, IE’, and IZ’ in the Municipality of Piraeus
- Zone IB’ in the Municipality of Pyrgos, Elis
- Zone A’ in the Municipality of Ithaca (encompassing the entire town)
- Zone A’ in the Municipality of Astypalaia (encompassing the entire town)
- Zone A’ in the settlements of Volada, Kyra Panagias, Menetai, Pylai, Spoas, Theologou, and Kremasti in the Municipality of Karpathos (each settlement constitutes a separate zone)
- Zone A’ in the Municipality of Karpathos (encompassing the entire town)
- Zone A’ in the settlement of Pastidas in the Municipality of Rhodes (encompassing the entire settlement)
- Zones A’, E’, Z’, and ST’ in the Municipality of Rhodes
- Zone A’ in the settlements of Emporios and Pedion in the Municipality of Symi (each settlement constitutes a separate zone)
- Zone D’ in Loutraki, Municipality of Loutraki-Perachora
In these 35 zones across 12 municipalities, reductions in property zone values will lead to tax cuts for 20 property-related taxes tied to these values. Affected taxes include the Uniform Real Estate Property Tax (ENFIA), transfer taxes, donation taxes, parental benefit taxes, and inheritance taxes.
Gradual expansion of the objective value system
Beyond the reductions in objective property values in the aforementioned areas, the Ministry of National Economy and Finance plans to gradually expand the system of objective value assessment for taxable property values. This system, based on zone values, will be extended to 2.167 additional areas currently using less reliable methods, such as initial construction cost estimates or property value assessments conducted by local tax offices using comparative data.
Currently, the objective value system covers 98.5% of the country, leaving 1.5% (representing these 2.167 areas) yet to be integrated. This integration will occur gradually and is expected to lead to significant increases in the taxable values of properties in these areas. As a result, substantial increases are expected in the 20 property-related taxes that apply to ownership and transfers in these regions.
What’s changing from 2026: automatic adjustment of taxable property values
In 2026, the Ministry of National Economy and Finance will introduce a comprehensive reform of the property valuation system. The aim is to align taxable property values more closely with actual market prices through modern, more accurate procedures. A key component of this reform is the creation of a Real Estate Registry, a new information system that will collect data on fluctuations in property prices and adjust zone values accordingly. This ensures that taxable property values reflect current market prices.
The Real Estate Registry
The registry will collect data from:
- the existing register of real estate transfer values, tracking transactions across Greece;
- the “Real Estate Market” database created through the integrated information system “Digital Services for Public Property and National Endowments”;
- relevant public and private sector property data.
As a result, all property-related taxes will be calculated based on values that fully align with real market prices.
The 20 affected taxes
The 20 property-related taxes impacted by the adjustments in zone-based values in the 35 areas include:
- Primary Uniform Real Estate Property Tax (ENFIA), calculated per square meter based on zone values.
- Additional Uniform Real Estate Property Tax (ENFIA) for properties exceeding €300.000 in taxable value, applied to owners of urban property (buildings and land within city plans) with total taxable values over €300.000, assuming ownership or partial property rights valued at €400.000 each.
- Property transfer tax (3% of taxable value).
- VAT (24%) on new buildings, applicable to properties that are not primary residences.
- Usufruct tax on properties.
- Tax on land swaps or consolidations.
- Property distribution tax.
- The real estate tax, imposed in favour of municipalities.
- Municipal transaction tax.
- Deed registration fee.
- Parental benefit tax on properties, with an exemption limit of €800.000 and a 10% rate.
- Property donation tax with an exemption limit of €800.000 and a 10% rate for donations to spouses or grandchildren. for other relatives, exemptions range from €30.000 to €6.000, with rates from 5% to 40%.
- Inheritance tax on properties, which is calculated with an exemption limit of €150.000 and tax rates ranging from 1% to 10% for donations to spouses, children, or grandchildren. For second-degree relatives, the tax-free threshold is €30.000, with rates ranging from 5% to 20%. For other relatives and non-relatives, the tax-free threshold is €6.000, with rates ranging from 20% to 40%.
- Property registration fee to the land registry office.
- Urban planning penalties for unapproved structures.
- Urban planning fines for illegal constructions.
- Land contribution for city planning inclusion.
- Special real estate tax (15%) on offshore companies.
- Income tax based on deemed income determined by objective spending or lifestyle benchmarks.
- Tax on deemed income from the self-use of business premises or free housing provision, calculated by multiplying the property’s objective value by a 3% rate.
[1] The present constitutes a summary of the article entitled “ENFIA reduction in 35 regions – What other taxes are reduced for property [detailed tables]” published on the website “Eleutheros Typos” on 21.12.2024 available in Greek at: https://eleftherostypos.gr/oikonomia/meiosi-enfia-se-35-perioches-poioi-alloi-foroi-meionontai-gia-ta-akinita-analytikoi-pinakes.
Text edited and authored by: Thalia Dolka, lawyer in Athens, holds an LLM in Civil Law and is an LLM candidate at the Law School of Strasbourg.