Hoping to get a new financial help from the EU (amounting to more than €10 billion), the Greek Parliament approved new reform, which media has dubbed the "austerity measures". Discussion of the bill was very emotional, and one of the deputies threw a disc with the documents directly in the government box. It is known that the bill, which barely fit on 284 pages, was submitted for discussion in just a few days before the decisive vote.
As a result 153 of 300 deputies voted for the adoption of reforms, 145 were against, 2 MPs were not present for the vote. Greek Prime Minister Tsipras assured everyone that "this will be the last of sacrifices."
What sacrifices he was talking about? In addition to creating a special Fund for the management of cash proceeds from privatization of state property, many taxes will be increased– on gambling, new cars, cable TV and Internet, land and, of course, real estate. By raising taxes the government expects to receive about €1.8 billion in the treasury. In case of failure of this project, other budget expenditures will be reduces, including salaries and pensions.
On polling day in front of the Parliament a protest action was held in which have taken part about 11 thousand people. The protesters got to the gathering place despite the fact that the strike public transport did not work.
Whom will touch the ENFIA increase?
Representatives of the Government of Greece promised that ENFIA rate increase will affect only every eighth owner of the property. According to Tornosnews.gr, we are talking, at least about 800,000 people who own not only housing, but also premises such as hotels in Greece.
In General, the order is: the owners of the property, the objective value of which is above €200,000 will have to give in favor of the state on €50-€3,425 more than last year. The so-called objective value depends on the location of the object, height of the building, date of construction, number of facades, and many other factors.
If before the tax rate for objects of value up to €300,000, was zero, now this threshold was reduced to €200,000. Therefore, according to the Federation of Greek real Estate and officials of the Ministry of Finance, the number of owners, whose rate will increase, will be greater than the government expects.
If you own real estate, which is estimated at €400,001 – €600,000, the tax rate will increase by 150% - 325%. For more expensive objects the rate will not increase so much.
The following table shows more detailed information:
|
The cost of the project, €
|
New tax rate
|
Old tax rate
|
|
Up to 200,000
|
0%
|
0%
|
|
from 200,001 to 250,000
|
0,1%
|
0%
|
|
from 250,001 to 300,000
|
0,15%
|
0%
|
|
from 300,001 to 400,000
|
0,3%
|
0,1%
|
|
from 400,001 to 500,000
|
0,5%
|
0,2%
|
|
from 500,001 to 600,000
|
0,6%
|
0,3%
|
|
from 600,001 to 700,000
|
0,8%
|
0,6%
|
|
from 700,001 to 800,000
|
0,9%
|
0,7%
|
|
from 800,001 to 900,000
|
1%
|
0,8%
|
|
from 900,001 to 1000,000
|
1,05%
|
0,9%
|
|
from 1000,001 to 2000,000
|
1,1%
|
1%
|
|
More than 2000,001
|
1,15%
|
1%
|
The tax increase on real estate will be made retroactively, i.e. from 1 January 2016.
Two more bad news
Throughout 2015 Greece provided a 20% tax discount for owners of unoccupied premises and homes without electricity. Now it was abolished.
Those who owns a plot of land located in the city are not lucky as well. For this category, the tax rate will increse by 23-25%, no matter how the value has changed.
Text - Alyona Eliseeva, ee24
Photocredit Depositphotos.com