ENFIA does not only include the Principal ENFIA Tax but also the Supplementary ENFIA Tax, which is imposed by the following scale (a progressive tax rate) when the value (or accumulative value if more than one properties are owned) of real property assets of individuals exceeds the value of € 200.000 (formerly € 300.000):
REAL ESTATE DATA SOURCES
Rental Income & Taxation in Greece
Rental Income Taxation Insights
In Greece, navigating rental income and taxation can be complex, particularly in regions like Chania. Understanding the ins and outs of this process is essential for property owners and investors. This guide aims to shed light on the key aspects of rental income and taxation in Greece, with a focus on the Chania real estate market.
Which income will be taxed in Greece?
If you’re a resident of Greece, you’ll be subject to tax if you:
- Have permanent residence or the center of interests (such as personal, economic, and social ties) in Greece.
- Are consular, diplomatic, or a public official under a similar regime, or a civil servant of Greek nationality serving abroad?
- Stay in Greece continuously for a period exceeding 183 days, including short periods of presence abroad from your first day of presence in Greece.
However, this doesn’t apply if you’re in Greece for tourism, medical, therapeutic, or similar private purposes, and your residence doesn’t exceed 365 days, including short stays abroad.
If you’re not a resident of Greece, you’re subject to tax for the income acquired in Greece in a given tax year.
Curious about Greece’s Taxation System, particularly in relation to real estate or do you want to learn more about real estate taxation (ENFIA)?
Individuals Taxes
Income Tax: Greece has a progressive income tax system, with tax rates ranging from 22% to 45% for individuals. The tax rates and income brackets can vary slightly from year to year.
1. Individuals
Rental Income & Taxation in Greece Rental income is taxed as ordinary private or business income. Liability to tax Rental income received by individuals is subject to individual income tax. Basis to tax Income of individuals is allocated to one of the following four categories (schedules):- Income from employment and pensions
- Business income
- Investment income
- Income from capital gains
Starting from January 1, 2013, personal income tax rates in Greece vary depending on the source of income, such as employment or rental income, and are calculated accordingly.
Furthermore, significant amendments to individual income taxation were introduced on May 8, 2016, through the adoption of the Law on the ‘Unified Social Security System – Reform of insurance and pension system – Income taxation and gaming taxation regulations’. This law also serves as a fundamental reform of the pension system.
The tax scale applying to employment income, pensions, and business profits is illustrated below:
| Income tax scale (salaries, pensions, and business profits) | ||||
| Amount of income (EUR) | Tax rate (%) | Corresponding tax (EUR) | Total income (EUR) | Total tax (EUR) |
| First 10,000 | 9 | 900 | 10,000 | 900 |
| Next 10,000 | 22 | 2,200 | 20,000 | 3,100 |
| Next 10,000 | 28 | 2,800 | 30,000 | 5,900 |
| Next 10,000 | 36 | 3,600 | 40,000 | 9,500 |
| Above 40,000 | 44 | |||
Real Estate Taxation
According to article 44 of Law 4111/2013, a tax on luxurious living is levied on the owners or possessors of swimming pools (internal or external) which is to be equal to the product of the annual legal expenditure multiplied by a rate of 13%.2. Real estate property
If you’re considering upgrading your building for improved energy efficiency, functionality, and aesthetics, there’s good news. You may be eligible for an incentive in the form of a 40% income tax reduction on the related expenditure. This incentive applies to expenses incurred between January 1, 2020, and December 31, 2024, provided your building hasn’t already been part of an upgrading program.
New tax rates and broadened tax basis applicable on income derived from real estate are introduced. In particular:
| Income tax scale (rental) | ||||
| Amount of income (EUR) | Tax rate (%) | Corresponding tax (EUR) | Total income (EUR) | Total tax (EUR) |
| First 12,000 | 15 | 1,800 | 12,000 | 1,800 |
| Next 23,000 | 35 | 8,050 | 35,000 | 9,850 |
| Above 35,000 | 45 | |||
Inheritance Tax Overview:
In Greece, Inheritance Tax is levied on the current value of inherited property, encompassing both movable and immovable assets within the country, regardless of the descendant’s nationality. The taxable value of inherited real estate is determined by its ‘objective value’, calculated based on predetermined factors set by the Ministry of Finance.3. Inheritance Tax
Following Greek tax laws, Inheritance Tax is calculated based on the current value of the inherited property. This encompasses all types of movable and immovable property situated in Greece, irrespective of the descendant’s nationality.
The taxable value of real estate inherited is determined by its ‘objective value’, calculated using predetermined factors established by the Ministry of Finance at the time of the deceased’s death.
However, immovable assets located outside of Greece are not subject to Greek Inheritance Tax, regardless of the deceased’s nationality or residency status.
| Value (EUR) | Tax rate (%) | Tax (EUR) | Total value (EUR) | Total tax (EUR) |
| Category A’ (a. the spouse, b. the children, c. the grandchildren, d. the parents, etc.) | ||||
| 150,000 | – | – | 150,000 | – |
| 150,000 | 1 | 1,500 | 300,000 | 1,500 |
| 300,000 | 5 | 15,000 | 600,000 | 16,500 |
| Above | 10 | |||
| Category B’ (a. the great-grandchildren et seq., the grandparents and great-grandparents, c. the brothers and sisters, etc.) | ||||
| 30,000 | – | – | 30,000 | – |
| 70,000 | 5 | 3,500 | 100,000 | 3,500 |
| 200,000 | 10 | 20,000 | 300,000 | 23,500 |
| Above | 20 | |||
| Category C’ (all the rest of the relatives) | ||||
| 6,000 | – | – | 6,000 | – |
| 66,000 | 20 | 13,200 | 72,000 | 13,200 |
| 195,000 | 30 | 58,500 | 267,000 | 71,700 |
| Above | 40 | |||
Important Dates for Reporting and Payment
In Greece, the fiscal period spans from January 1st to December 31st of the same calendar year. However, tax obligations are applied to the subsequent fiscal year.
Consequently, the tax year aligns with the year following the period of income. Taxpayers are required to submit their tax declarations by March 2nd following the conclusion of the tax year. For individuals who solely derive income from employment, there’s no obligation to file an annual return. Instead, their employer withholds taxes and remits them to the tax authority on a monthly basis.
Additionally, companies are mandated to make periodic advance tax payments every three months. Conversely, self-employed individuals are required to fulfill tax obligations five times a year, corresponding to the conclusion of each quarter and the fiscal year.
Important Note! The tax amount that arises on income from employment and pensions is reduced by the amount of 777 euros for the taxpayer without dependent children. The reduction increases for taxpayers with dependent children, depending on their number and decreases for all taxpayers, inversely proportional to the amount of their income, provided that it exceeds the amount of 12,000 euros (Article 16 of the ITC).
b) Income (profits) from business activity shall be taxed by the scale of employment and pensions income, after being added to any income from salaries and pensions.
c) Capital income (dividends, interest, royalties, real estate), which is taxed:
i. according to the following rates for income from dividends, interest, royalties, as applicable.
| Income from | Tax Rate |
| Dividends | 5% |
| Interest | 15% |
| Royalties | 20% |
The Supplementary ENFIA Tax
| Value of property (€) | Tax Rate (%) |
|---|---|
| 0,01 – 200,000 | 0.0 |
| 201,000 – 250,000 | 0.10 |
| 250,000,01 – 300,000 | 0.15 |
| 300,000,01 – 400,000 | 0.30 |
| 400,000,01 – 500,000 | 0.50 |
| 500,000,01 – 600,000 | 0.60 |
| 600,000,01 – 700,000 | 0.80 |
| 700,000,01 – 800,000 | 0.90 |
| 800,000,01 – 900,000 | 1.00 |
| 900,000,01 – 1,000,000 | 1.05 |
| 1,000,000,01 – 2,000,000 | 1.10 |
| over 2,000,000 | 1.15 |
Uniform Real Estate Property Tax (ENFIA)
According to Law 4223/2013, as of 2014 and for each subsequent year, a Uniform Real Estate Property Tax (ENFIA) is levied on real estate properties that are located in Greece and belong to natural or legal persons or any kind of legal entities on 1 January of every year. This tax applies to real estate rights of absolute ownership, bare ownership, usufruct, occupancy and surface rights of the property.
Supplementary ENFIA Tax for Legal Persons or Legal Entities
The supplementary ENFIA is also imposed on the property of legal entities, which is calculated at a rate of 5,5‰ although it is subject to discounts, such as 3.5‰ for the properties owned by non profit organizations.
Further Taxation on Offshore Legal Entities
Additionally, the Greek legislator introduced by virtue of Article 15 of Law 3091/2002 (as amended by Law 4446/2016), the liability of certain legal entities (such as offshore companies), that have full property rights or bare ownership or usufruct property in Greece, to pay an annual special property tax of 15%.
Several exceptions from this tax obligation are set out by virtue of Article 15 paragraphs 2-4 Law 3091/2002, such as for companies that have their headquarters in Greece or another EU country (typically SA and Ltd companies), on a. the condition that the shares of the companies are owned by individuals or that these companies declare the individuals who are owners of their shares, and b. that these individuals have been issued with a tax registration number in Greece.
The Property Buying Process
Unlocking the Property Buying Process in Greece: Essential Resources and Guidance. Where to Begin? Who to Reach Out to? Navigating Potential Pitfalls with our REDS guide.
The Property Selling Process
Are you considering selling your home or investment property in Greece? Unsure of where to start and what are the requirements? Here are steps you can take to make your residential or commercial property sale a success.
Greek Real Estate Law & The Hellenic Cadastre Regulations
This section covers the entire spectrum of legal issues which arise in practice when purchasing, managing, utilizing, developing, renovating and reselling property in Greece.
Understanding Property Purchase Costs in Greece
This guide is tailored for individuals contemplating the purchase of a residential property in Greece. While particularly beneficial for first-time buyers, even seasoned property investors can gain insights into the evolving buying process by understanding its key steps.
Greek Real Estate Taxation
The following section outlines the primary taxes and key considerations pertaining to the acquisition, ownership, and disposal of real estate assets in Greece. It focuses on residential, commercial, and investment properties, providing essential insights into taxation.
Residence Permits & Greece Golden Visa
This section addresses all potential questions regarding eligibility for the Greek Golden Visa program and details the procedure for obtaining a residency permit.
DISCLAIMER
The materials presented in the Greek Real Estate Data Sources and Research (REDS) guide are distributed by ARENCORES – Chania Real Estate as an information source only. While every effort has been made to ensure the accuracy and completeness of the information, no guarantee is given nor responsibility taken for errors.
As the information is for general use and not intended to serve as advice, no warranty is given in relation to the accuracy, reliability, or appropriateness of any information. The information does not constitute professional advice and should not be relied upon as such. Users are therefore encouraged to consult with their chosen professional advisers before making any decision.
We do not accept any liability for any loss or damages arising from the information or advice provided on this website or incorporated into this website by reference, or which is incurred as a result of the use of, or reliance upon, the information and advice contained on this website.
Dive into Greek Real Estate Data Sources and Research (REDS), an encompassing resource delving into the intricate nuances of Greek Property Law, Property Ownership, Real Estate Rights, and the Hellenic Cadastre registration process. This comprehensive guide not only elucidates these fundamental concepts but also addresses crucial gaps in understanding associated liabilities for buyers, sellers, and real estate investors, offering insightful paradigms and invaluable tips.
Example of ENFIA Tax (Primary and Supplementary) Calculation
A 4th floor apartment in Chania City centre with total size of 156m², auxiliary areas 2.0m², 1 facade, 2015- the year of construction, with an objective value of €441.340,90 and zone price €4.900.
The B.T. according to the zone price is 11.3€/m² as shown at the first table.
The values of the other coefficients applied in the present case and derive from corresponding tables, provided in article 4 L.4223/2013 and are the following:
- The building oldness coefficient for the construction year 2015 is 2,00.
- The tax coefficient for the 4th floor is 1,02.
- The facade coefficient for a real estate property with one facade is 1,01.
- The auxiliary rooms coefficient for 2.0 sq.m is set to 0,1.
Therefore, the Principal Tax derives from the sum of the following products:
- m2 (of main spaces) x B.T. x building oldness coefficient x floor coefficient x facade coefficient =
- 156 x 11.3 x 2,00 x 1,02 x 1,01 = €3.632,07
- SQ.M (of auxiliary rooms) x B.T. X building oldness coefficient x floor coefficient x Auxiliary spaces coefficient = 2 x 11.3 x 1,00 x 1,02 x 0,1= €2,30
Total amount of Main Tax: €3.634,37
In case the objective value of the real estate property is over €250.000, a supplementary tax is implied as well, which is estimated according to the above-mentioned scale.
The supplementary tax for the specific real estate property (property’s value €441.340,90), amounts to € 1,001.53.
Total amount of EN.F.I.A.=Main tax + supplementary tax = €3.634,37+ €1,001.53= €4.635,90.
ENFIA Tax Requirements and Procedures for Property Acquisition in Greece
Upon acquiring real estate property, the owner must submit a declaration of real estate information (E9 form). This allows for the calculation and issuance of the ENFIA assessment, which is comprised of both the main tax and the supplementary tax.
The main tax is based on factors such as the property’s location, area, use, age, floor, and number of façades, and it applies to both individuals and legal entities.
The supplementary tax, however, is only applicable to legal entities. It is calculated at a rate of five and a half per thousand (5.5‰) on the value of the specified rights. For real estate used by the owner for any type of business activity, the supplementary tax is calculated at a rate of one per thousand (1‰).
Taxpayers are notified of the issuance of a declaration or administrative tax assessment via the Independent Authority for Public Revenue’s (AADE) online application at www.aade.gr, as well as through email notifications sent to the email address they provided.
Annual Payment of ENFIA Tax
ENFIA is paid annually, either as a lump sum by the last working day of the month following the issuance of the tax assessment or in up to ten (10) equal monthly instalments, due by February of the following year, with each installment being at least ten (10) euros. If the tax assessment is issued by the 15th of the month, the tax can be paid either as a lump sum by the end of that month or in up to ten (10) monthly installments until February of the following year.
When transferring property, taxpayers must present an ENFIA certificate to the notary public, confirming that they have paid the tax corresponding to the property’s value for the five years prior to the transfer and that they have no outstanding ENFIA debts related to other properties.
In the case of transferring ownership or usufruct over a property, the final owner or usufructuary is jointly liable with the previous owner for the payment of the ENFIA tax owed.
Innovation and Intelligence
In 2014, ARENCOS established ARENCORES to facilitate property buyers’ decisions and holistically research the risks and opportunities of the Chania real estate market. Working closely with property investors, buyers and sellers ARENCORES provides professional, scientific and technical services dedicated to the Chania property market.
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RESTful Platform
Our RESTful platform – Chania Estate Agency consultancy – operates on a fee-for-service basis. Whether you require advice on engineering and architectural matters, inquiries at the Land Registry office (Ypothikofilakeio), dedicated property pricing valuation, or a re-evaluation of your current real estate needs, we are here to assist you.
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iPRO Platform
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Valuation & Advisory Real Estate Services in Chania
We provide uniquely informed perspectives on real estate valuations and property consulting, leveraging rich data from the Chania real estate market and delivering consistent, reliable service.
ARENCOS
ARCHITECTURAL ENGINEERING CONSULTANCY SERVICES
ARENCORES: Looking Beyond The Obvious
Unlock the value in every dimension of your real estate in Chania, Crete. Using Big Data Analytics and Advanced research, we provide bespoke real estate services that drive superior outcomes.
Knowledgeable, transparent and tailored real estate advice.
It’s unrealistic to expect a property developer to possess expertise in every aspect of a real estate project. At ARENCORES, we recognize this and offer specialized services to meet diverse needs.
We distinguish ourselves from traditional real estate agents by prioritizing comprehensive solutions over simplistic promises. Instead of merely focusing on high sales prices and basic marketing, we emphasize accuracy and strategy in pricing to ensure successful outcomes for buyers and sellers.
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Invest, Finance & Value
As a property development and investment firm, our experience has helped us perfect how to maximize returns of investments by spotting the marginal gains in the Chania real estate market.
