Private appraisers certified by the Ministry of Economy and National Finance are invited by the financial body to propose new objective values in 36 areas of 12 Municipalities in the country for which the tensions presented were accepted.
These are specific areas of the municipalities of Ag. Anargyron – Kamaterou, Vrilissi, Chalandrio, Glyfada, Piraeus, Ithaca, Karpathos, Loutraki, Symi, Pyrgos, Rhodes and Leros.
With a decision signed by Minister of Economy and National Finance Kostis Hatzidakis and Deputy Minister of Finance Christos Dimas, evaluators are invited, within 15 days, to follow a rigorous methodology, including comparative analysis, income capitalization and costs, to determine property values.
A special online platform will be used to collect and process evaluation data, thus ensuring efficiency and transparency. They will then deliver their conclusions to the leadership of the Ministry of Economy and National Finance. The new prices that will be set will not have retroactive effect as long as the appraisers’ fees are set at 100 euros (plus VAT) per assessment (area).
It is recalled that in January 2023, 169 municipalities appealed to the Ministry of Economy and National Finance asking for a reduction in objective prices, as they highlighted that their level did not correspond to reality. Of the municipalities that raised objections, only 12 were justified, while the rest of the objections were rejected. The justification given for the municipalities that were not justified was that the files were incomplete in terms of documentation, which is why these objectives should be reduced.
With the entry into force of the new rates in the areas of the 12 Municipalities, 20 taxes and fees levied on the acquisition and use of properties will be affected. The affected taxes are, among others:
- Mr. ENFIA, which is charged based on basic tax value tables per m2. of property depending on the value of the zone price per m². applicable in the area of each property.
- The complementary ENFIA for natural persons, which is levied on the sum of the taxable values of buildings and territorial areas included in the urban plans held by each natural person, as long as this value exceeds 250,000 euros.
- Property transfer tax, which is calculated at the rate of 3% on the objective value of each property sold and is borne by the buyer.
- The 24% VAT charged on sales of new construction buildings that do not constitute a first home
- Building occupancy tax
- The land exchange tax
- The asset distribution tax
- Property Tax, which is levied in favor of municipalities through the electricity bill and is calculated with scaled coefficients between 0.25‰ -0.35‰ on the values of the target zone of electrified buildings
- Municipal tax on property transfers
- The additional contract transfer fee
- The real estate gift tax, which is calculated with a tax-free limit of 150,000 euros and rates of 1%-10% for gifts to spouses, children or grandchildren, with a tax-free limit of 30,000 euros and fees of 5%-20% for donations to other second-degree relatives and with a tax exemption limit of 6,000 euros and rates of 20% to 40% for donations to other family members and non-family members
- Parental provision and property inheritance tax
They don’t change in 2025
It should be noted that the objective values should not change in 2025. Based on what is written in the 2025 budget proposal, revenues from regular property taxes are reduced by 39 million euros compared to 2024.
In case of adjustment of objective values, there should be an increase in said revenues. After all, a new adjustment is likely to lead to a new round of property price increases, making it even more difficult for families to purchase or rent properties.