Taxpayers brace for property tax payments

Taxpayers brace for property tax payments

Greek taxpayers will be called upon to make daunting tax payments in the next few weeks.

The ENFIA property tax payments due will be uploaded to the Taxisnet system by 31 August.

The tax is payable in up to five instalments, starting from the end of September to the end of January 2018. A total of approximately 7.4 million taxpayers will pay over 3.2 billion euros in property tax. The Finance Ministry’s target is to collect 2.65 billion euros.

Arrears to the Greek state increased by 5.47 billion euros in the first half of 2017. The total amount of money owed to the Greek state by individuals and businesses is 95.6 billion euros. In an attempt to reach revenue targets, authorities have reportedly increased confiscations of pensions and bank deposits.

A recent re-calculation of the property tax will result in many taxpayers losing their exemptions. This means that unemployed persons and low income pensioners will most likely be called upon to make ENFIA payments this year.

Moreover, over 500,000 taxpayers will be called upon to pay more than 1,000 euros in ENFIA tax. This is the result of the difference between objective property prices and market value being chaotic, primarily due to the market crash following the financial crisis. Therefore, thousands of Greeks will pay large amounts of money in tax payments for property whose actual value is not as high as the Tax Authorities consider it to be. According to Bank of Greece figures, the average value of property in Greece has dropped 34 percent between 2009 and 2014.

The tax-tsunami is expected to continue next year too. Added taxes passed last year in the wake of the third memorandum must yield 5.538 billion euros, up from 5.084 billion in 2017.

Overall, based on forecasts in the medium-term fiscal strategy program, the Greek state must collect revenues of roughly 49 billion euros in 2018, an increase of 725 million euros from the current year./IBNA