ATHENS – “The government is today proceeding with a new and generous permanent reduction in ENFIA by 13 percent,” stated Prime Minister Kyriakos Mitsotakis on Wednesday, underlining that “it meets the government’s commitment for a 30 percent reduction on real estate taxation.”

Kyriakos Mitsotakis described this as a “fair decision for society and beneficial for the economy”. He also explained that it was a realistic move, which does not exceed the fiscal margins, stressing that “every step forwards must be taken in such a way that it does not lead to two steps back.”

“Lowering of ENFIA tax part of a reform of property taxation”

A government decision to lower the ENFIA special property tax by 13% is in the framework of a total reform in the taxation of property, Finance Minister Christos Staikouras said on Wednesday. Presenting the measure, Staikouras said the reform was drastically changing the structure of the property tax as official property prices were readjusted, new regions were added, the zones for determining official property prices were expanded, base property tax factors were significantly lowered and a supplementary tax was incorporated in the base tax.

The Greek FinMin said the property tax reform had four main targets: implementing a pre-election pledge to reduce a special property tax for individuals by 30%, lowering the tax for the vast majority of citizens, enhancing social justice and cohesion and offering more flexibility in the repayment of the tax with more tranches.