As a property owner in Greece, an individual should be aware of and consider the various taxes for properties in Greece. Depending on the type and location of the property, there are some cases in which the financial burden for property taxes might be significant, so let’s review them:
STANDARD PROPERTY TAXES
- ENFIA – Literally translates as “unified property ownership tax” and is applied to all the properties, no matter their characteristics. It is issued annually and can usually be paid in 6 monthly arrangements. The amount is calculated through a complicated formula that takes into account the total sq.m. of the property, the location and floor, the age of the property and some other factors. In general, the bigger the property, the higher the ENFIA will be. Also, a house in a high-end, popular location in a big city will have higher ENFIA than an identical one in a small village on a mountain.
- Complementary ENFIA – in case an individual owns properties with a total value of more than €300.000, a second, complementary tax is applied, which is calculated on the surplus of €300.000 and can be up to 1%.
For a foreigner who doesn’t have income in Greece at all, this is the only tax applied. In case, though, that they start having an income, either by renting their property or by business activity, things may change. First of all, any individual that has income in Greece is obliged to make an annual Tax Statement, which is done around April-May each year. The taxes that may arise from property ownership are the following:
POOL RELATED TAXES
- Properties with swimming pools, either indoor or outdoor ones, are subject to a tax called “Living Luxuriously” Tax. The amount depends only on the surface of the pools and is paid annually, along with the rest of the taxes, usually in 5 instalments. For example, for an outdoor, 100 sq.m. swimming pool, the tax is going to be around €3.000.
- For properties with swimming pools, another tax-related amount occurs. “Living cost presumption” is not an actual tax, it is the minimum amount of money you are supposed to earn annually, in order to preserve the pool. This amount is automatically considered the minimum income you have when it comes to paying taxes. So, for example, if you own an outdoor swimming pool with an area of 100sqm, the Living Cost presumption is 22.400 euros. So, in your Tax Statement, this amount will appear automatically. This is a minimum amount, though, and it is not added to your actual income. If your actual income is higher, your taxes will be calculated on your actual income.
RENT RELATED TAX
The amount of money earned by rent is taxed independently from any other income. The tax is calculated as a percentage on the rents received.
- The first €12.000 is taxed at 15%, which means that if you earn €12.000 from rent, the tax you will pay is €1800.
- For any amount between 12.001 euro and 35.000 euro, the tax applied is 35%. For example, if you earn 35.000 euros, your tax will be 1800 euros for the first €12.000, plus 35% of the remaining 23.000 euros, which totals an amount of €9.850.
- Any amount above €35.001 will be taxed at 45%. For example, if you earn €50.000, your tax will be €9850 for the first 35.000 euros, plus 45% of the remaining €15.000, which totals an amount of €16.600.
The above information might seem complicated but doesn’t have to be. For most cases of owners who have to pay property taxes in Halkidiki, only ENFIA applies, and the amounts are relatively low for the area. In any case, though, the wise thing to do is hire a professional to handle your cases. In Halkidiki Properties we are more than happy to suggest an accountant help with your taxes.