OLDITY FACTOR: The significant zone price increases announced in various regions of the country were apparently based on estimates made in the immediate pre-corona era (2019 – early 2020) but mainly in today’s comparative data from contracts for the purchase and sale of new or under construction apartments in new buildings, which must necessarily be of energy class at least A+, without which they are considered arbitrary. Achieving this class requires that they have individual heat pumps, underfloor heating, external insulation with a thermal facade, production of 65% of hot water from renewable sources and photovoltaic systems, with huge construction costs that justify the above zone prices in newly built homes, but an immediate intervention is required in the Obsolescence Coefficient, which currently reduces the values of all the remaining buildings as follows:
- For houses: -10% every five years for first 10 years and then -5% every five years and only up to -40% (that is, the first apartment buildings of the 50s and 60s are assimilated to the homes of the 80s!)
- Of commercial properties: -5% every five years and only up to -20% (that is, all the offices and shops of the previous century are assimilated to the relevant new buildings of 2000!)
- Of buildings in general in ENFIA: +- 5% per five years and only up to -20% , (with the application of the truly inconceivable “youth factor” which instead of reducing the value of the old, increases the value of the new by 25%!).
On the contrary, with an administrative provision – a “trap” that must be abolished immediately, the urban development of even one square meter nullifies the antiquity and increases the value of the entire property, taxing it as newly built!!!
Consequently, the Decreasing Coefficient of Obsolescence must be doubled both in terms of percentages and in terms of the time of depreciation, because the real values of older buildings are already depreciating continuously and programmed through the energy performance certificate and the new mandatory specifications of all kinds, leading the older buildings to obsolescence and finally to their demolition.
ENFIA ADDITIONAL TAX: The increase in the zone prices of thousands of urban areas of the country, without a drastic reduction of the Commerciality Factor, which will trigger exponentially multiple increases in ENFIA, urgently raises the question of the immediate abolition of the so-called “Supplementary Tax” (often multiple times the main tax) that the middle class has been forced to pay as a kind of annual “ransom” for to keep each owner out of seizure of their accounts and assets and potentially out of jail. The fiscal space that will result from the extension of their application to areas of great value that until now were in the fireproof zone, for the sake of which it was imposed, should be used for the restoration of this injustice as an absolute priority. All those who cut in favor of the middle class, must immediately and without hesitation end this peculiar “hostage” of those owners who have literally suffered in recent years to pay the Supplementary Tax of ENFIA…
Read the decision with the new objective values here.
EXACTLY WHICH CHARGES ARE GOING UP?
ENFIA (SIR & ADDITIONAL TAX)
TRANSFER – DISTRIBUTION – EXCHANGE TAX
PARENTAL PROVIDENCE – LIVING DONOR & CAUSE OF DEATH
PENSION FEES & TRANSFER OF CONTRACTS TO THE LAND REGISTRY
INHERITANCE TAX
READY OF REAL ESTATE (TAP)
PROOF OF LIVING
URBAN PLANNING FINES
CONTRIBUTIONS FOR INCORPORATION IN CITY PLANS
See morehere
HYPOIK: Reform and readjustment of the objective values of real estate
The Ministry of Finance announced the following in relation to the new objective values.
- Why the reform was necessary of the framework for determining the objective values of real estate?
The reform of the framework of objective values, which was a priority of the Government and the Ministry of Finance, became necessary, because it had to:
- Structural weaknesses of the existing system should be addressed.
- To be modernized digitally and transparently the process.
- To correct past injustices at the expense of many owners.
- To harmonize the objective values with developments in the real estate market.
It is a reform that, at the same time, constitutes a commitment – and a significant backlog from the previous period of the country’s governance – in the framework of the enhanced supervision regime.
It is a reform that also includes the readjustment of property values throughout the territory – to 98% population coverage, up from the 85% that applied before, with zones whose prices show increases , reductions, but also maintenance at the same levels.
- Will the readjustment of objective values cause an increase in ENFIA?
This reform departs from the past, asthe increase in the objective value does not mean an increase in the ENFIA , which is the concern of most owners.
It is a reform that will result in the formation of the new ENFIA strong>in 2021 – but with implementation from 2022 –, with new rates, harmonized with the adjustment of objective values, with a new structure and structure and with maintaining the overall fiscal neutrality of the tax – that is, despite the changes in objective values the public revenues predicted by ENFIA will not increase.
On the contrary, taking into account the fiscal space, as well as the data of the economy in the next period, the possibility of a further reduction of the ENFIA will be considered, following the 22% reduction that occurred in 2019, implementing the government’s commitments.
- What does objective values reform include?
The reform initiative is based on two phases, with the axes of the first phase being (a) the modernization and improvement of the institutional framework, (b) the spatial expansion of the system objective determination of property values, (c) the technological modernization and configuration of a digital platform, and (d) the updating of zone values by certified appraisers of the Registry of the Ministry of Finance.
In general, the price-setting process (as it was formed in the 1980s) was based on the recommendations of specific local committees, which consisted of local government representatives and local officials, with the result that ministerial decisions often lacked sufficient reasoning and scientific methodology . The use of certified appraisers of the Ministry of Finance Registry in 2018 was an attempt at a safer methodology for determining zone prices. However, the procedure was not standardized and was judged by the Council of State to be insufficient. Consequently, the amendment of the institutional framework, as one of the axes of implementation of the reform, ensured the compliance of the system and the methodology followed with the reasoning of the annulment decisions of the Council of State, as well as the strict application of international and European assessment standards, in order to have a scientifically sound and internationally accepted methodology for determining prices.
The system for the objective determination of real estate values now consists of 13,808 zones representing the 98% of the population from 85% that was before the reform, as many areas of the Territory were outside the system. It is indicated that Zakynthos, Kefalonia, Ithaca, Chios, Samos, Patmos, Karpathos, Ilia, Nafpaktos, Kythira and other areas with significant tourist activity, such as em>Mykonos, Corfu and Kos, were – to varying degrees – outside the system of the objective determination of real estate values, with the result that the ENFIA is calculated based on the lower zone price of the municipal unit or municipality or regional unit, to which the areas in question belong. In case the zone value of the municipal unit was not determined, the lower zone value of the municipality concerned was taken into account, or in case the zone value of the municipality concerned was not determined, the lower zone of the regional unit was taken into account. The inclusion of these areas in the system of objective values means that the determination of the zone value is based on its characteristics. At the same time, the expansion of the system throughout the Territory, in addition to ensuring a uniform treatment of all areas, satisfies the constant request of citizens and local governments for a uniform tax treatment of all propertiesrestoring the sense of justice, expanding the taxable base and distributing tax burdens more fairly.
- What are the effects of the adjustment and updating of zone rates ;
Regarding the results of the adjustment and updating of zone prices and depending on the zone category, the zones are divided into old (existing) and new (new oks and extensions).
In particular, new zones (new oks and extensions), which amount to 3,643 zones (26% of the total zones of the system), which until now were outside the system of objective values and received the lowest zone price of the municipal unit or municipality or regional unit, significant changes are detected.
Of the new zones, in extensions of existing zones there is an increase in 80% of the 165 zones. Their inclusion in the system results in an average increase in zone prices to 41% compared to the existing ones, through the process of certified appraisers. A large increase, by 229%, is found in three zones of Mykonos, as until today they were calculated at a price of 1,200 euros and their final price is now 3,800 and 3,950 euros, while significant increases are found in zones of areas, among others, such as Lagonisi, from 750 to 1,450 euros (93% increase), Maroussi, from 1,300 to 2,000 euros (54% increase), the Chalandri, from 1,250 to 1,900 euros (52% increase), Corfu, from 1,050 to 1,600 euros (52% increase) and Nea Alikarnassos, from 650 to 900 euros (a 38% increase).
At the same time, from the new zones, in the new okay, an increase of 40% is observed of 3,478 zones, which averages out to 26%. Increases, through the process of certified appraisers, found in areas whose zone price was outside the objective determination system, such as Ithaca, from 600 to 2,100 euros (250% increase), the Rhodes, from 700 to 2,100 euros (200% increase), Kos, from 650 to 1,350 euros (108% increase), Kassandra of Halkidiki, from 800 to 1,550 euros (94% increase), Kefalonia, from 700 to 1,250 euros (79% increase), Heraklion, from 600 to 1,050 euros (increase 75%), Anavyssos, from 1,050 to 1,700 (increase of 62%), Skafidia Ilias, from 650 to 950 euros (increase of 46%), and >Patmos, from 650 to 900 euros (38% increase). At the same time, there are also many areas, where the zone prices were reduced in relation to the price that was set outside the system of objective values, as the recommendations of the certified appraisers approached the characteristics of the area more precisely. In particular, from the zones of the new accessions, 1,509 zones, i.e. 43% of the new accessions, show a reduction in price, which is an average of 18%. Reductions are found in regional zones, such as Florina, from 600 to 300 euros (50% reduction), Chios, from 800 to 450 euros (44% reduction), the Prespes, from 600 to 400 euros (33% reduction), Amyntaio, from 600 to 450 euros (25% reduction), and Orestiada >, from 500 to 400 euros (20% reduction).
Regarding the old, existing, 10,165 zones of the objective system the trend shown by the recommendations of certified appraisers is upward, as the 6,105 zones increase by an average of 18%. Increases, through the process of submission of proposals by the certified appraisers, are found in zones of areas, such as Santorini, from 1,100 to 2,250 euros (105% increase), Athens , from 1,850 to 3,600 euros (95% increase), Nafplio, from 1,300 to 2,200 euros (69% increase), Palaio Faliro, from 1,650 to 2,750 euros ( an increase of 67%), Vouliagmeni, from 2,400 to 3,850 euros (an increase of 60%), Glyfada, from 1,650 to 2,550 euros (an increase of 55%), and the < Greek, from 1,700 to 2,200 euros (29% increase). 2,729 zones remain unchanged, representing 27% of the existing zones, while 1,331 zones (13% of the existing ones) show a decrease, which amounts to an average of 11%. Reductions are found in areas such as Farsala, from 500 to 250 euros (50% reduction), Naxos, from 800 to 500 euros (38% reduction), the Ano Liosia, from 650 to 450 euros (31% reduction), Dodoni of Ioannina, from 550 to 400 euros (27% reduction), Konitsa strong>, from 600 to 450 euros (25% reduction), and the Derbenochoria of Boeotia, from 500 to 400 euros (20% reduction).
It is worth noting, with regard to the old – existing zones and, in particular, the comparison carried out on the basis of the 2018 prices, that the prices before the reform do not fully correspond to the recommendations of certified appraisers, which were submitted in 2018 during the previous nationwide update. As a result, the current valuations of the certified valuers also include changes – of the previous period – that should have already been incorporated into the objective values, but this had not been done. Therefore, in many cases the new price increases over the pre-existing ones reflect the real picture of the real estate market, which was practically not implemented in 2018 and its adjustment was postponed to the future.
In summary, for the entire Territory the picture for the new zone prices is relatively bullish, as (a) 7,634 zones (55% of the total) show an increase with an average increase of 19.5%, (b ) 2,860 zones (21% of the total) show a decrease, with an average decrease of 14.7%, and (c) 3,314 zones (24% of the total) remain unchanged.
- What does the second phase of the reform of the framework for determining the objective values of real estate include?
The reform initiative, after the adjustment of the objective values and their harmonization with the real estate market conditions, continues in two directions:
1h. The second phase of reforming the objective values framework, emphasizing, on the one hand, the further adaptation of the system data to the conditions that have formed in the real estate market and, on the other hand, to the digital restructuring and upgrading of the system.
2th. The formation of the new ENFIA by a specialized Tax Policy Working Group that has undertaken the processing of the coefficients, the characteristics and the structure of the new ENFIA, which will be implemented from 2022, without increasing the overall burden on citizens.
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