A series of outstanding issues concerning 7,200,000 landowners must be tackled after the election by the next finance minister if of course a government is formed.
At the same time, from the end of this month, citizens will start paying ENFIA installments that have already been included in the settlement notes found in their personal account in the Integrated Asset Information System ( www.aade.gr).
Real estate: Sales, parental allowances and donations on the rise
At the same time, if New Democracy wins the election and forms a government, it will have to implement its basic pre-election announcements regarding both the 10% reduction in ENFIA, as long as the property is insured against natural disasters (earthquakes, floods, fires), as well as gradually reducing the standard of living by an average of 30% over a four-year period. In the event that SYRIZA wins the elections and forms a government, in the program it has presented there is no pre-election commitment concerning the front of property taxes or presumptions.
As long as no government emerges from the polls on May 21 and the country is once again led to elections on July 2, the closure of outstanding files concerning the real estate front will be launched after the summer if not with the arrival of the new year. .
For several months, appeals – objections have been filed by approximately 170 municipalities out of a total of 332 distributed throughout the territory against the latest increases in the objective values of real estate. The Ministry of Finance, with a provision included in a tax bill, gave the possibility to municipalities which considered that the prices of the new tax area are much higher than what they themselves considered they should be to present objections and to be evaluated from scratch. The objections were submitted on February 6, but so far the relevant committee has not been called to assess them.
According to reliable information, any changes decided will be implemented with the new year, which will affect ENFIA 2024, but also transfers, parental benefits, inheritances that will arise from the new year.
On the other hand, before the end of 2023, it is expected that the new zone values will have been determined in thousands of zones that still remain in the plan but outside the objective determination. The number of new zones that will appear and cover the entire territory with the existing ones should increase to 2,167, as originally planned. However, the competent actors of the Ministry of Finance point out that even in this case, even if the new zonal tariffs are determined during the course of this year, their application will be effective from the beginning of the next.
With the completion of the nationwide zonal price imposition, it is estimated that the Ministry of Finance’s ambitious plan for the automatic adjustment of target property values on an annual basis will begin from 2024. This automatic mechanism will be based on a new information system that automatically draws data from various “sources” on the development of real estate prices, such as purchase and sale contracts, leases, analyzes by expert appraisers , the Bank of Greece, the local Office of Real Estate Services and other agencies.
Plots on plan
Another serious “thorn” which, although it was seen that it would be resolved before the elections, ultimately did not arise concerns the thousands of landowners, but also the investors in the areas outside the plan who cannot not proceed, after the decision of the Council of State, with the issuance of a building permit in the event that their land does not “give” onto a legally recognized street. This decision is estimated to affect about 9 out of 10 VEFAs and to remedy this, a legislative regulation must be submitted to parliament which will resolve the issue by restoring the constructability of the land until 2025, when the spatial planning should be completed. . The freezing of all building possibilities in off-plan areas concerns thousands of owners who had bought land with the logic that they would acquire constructability by derogation. Indeed, the technical chamber proposes to maintain the right to build until the completion of the TPS (Local Urban Plans) and EPS (Special Urban Plans) in 2025 for all properties that were buildable before 2003.
The 30% phasing out of presumptions of life will affect millions of homeowners, as the area rate and area determine presumptions which may lead to additional taxation of hundreds of thousands of citizens. At the same time, the 10% reduction in ENFIA announced by Prime Minister Mr. Kyriakos Mitsotakis after the elections concerns owners who annually insure their property against natural disasters.
Homeowners with mortgages will benefit from the introduction of the measure, with home insurance being compulsory for borrowers. According to the data, out of a total of 6,371,901 dwellings, 1,074,050 are insured.
On the other hand, SYRIZA announced the institutionalization of short-term rental rules (Airbnb) which is one of the main causes of overvalued purchase and rental prices. In particular, short-term rental activities (Airbnb) will not be allowed for legal persons (companies) because they hide a tourist product, while natural persons will be allowed for short-term rental activities for 2-3 properties/VAT of the owner and/or manager.