Greece to Reduce Property Tax by 13%

Greece’s PM Kyriakos Mitsotakis announced on Wednesday that he plans to permanently reduce the unpopular property tax, ENFIA, by 13 percent.

“We are moving forward to a new brave permanent reduction of ENFIA by 13%. We continue to cover part of the increases in electricity bills due to the international energy crisis, while on May 1 we will implement a second significant increase in the minimum wage,” Mitsotakis said.

Προχωράμε, σήμερα, σε μία νέα γενναία μόνιμη μείωση του ΕΝΦΙΑ κατά 13%. Συνεχίζουμε να καλύπτουμε μέρος των αυξήσεων στους λογαριασμούς του ρεύματος που οφείλονται στη διεθνή ενεργειακή κρίση, ενώ την 1η Μαΐου θέτουμε σε εφαρμογή και δεύτερη σημαντική αύξηση του κατώτατου μισθού. pic.twitter.com/MkoYG6GSMY

— Prime Minister GR (@PrimeministerGR) February 2, 2022

Mitsotakis described this as a “fair decision for society and beneficial for the economy.” He also explained that it was a realistic move, which does not exceed the fiscal margins, stressing that “every step forwards must be taken in such a way that it does not lead to two steps back.”

80 percent in Greece to pay less property tax

“Under the new rules eight out of ten property owners will pay an even lower rate,” Mitsotakis said. “A fair share will pay the same contribution, while a small minority, around 6 percent, will see a reasonable increase,” he said.

According to the conservative premier, the overall reduction of the new ENFIA dues will be around 350 million euros, much higher than the 70 million euros foreseen in the 2022 budget.

Electricity hikes

In the same message, he also announced that the government will continue to subsidize part of the hikes in electricity bills “due to global energy crisis” and added that a “second significant increase of the minimum wage will be implemented from May 1.”

Electricity prices in Greece have skyrocketed in recent months, putting increasing pressure on the government to act.

“Energy prices have gone beyond the unthinkable,” Greek Minister for Development and Investment, Adonis Georgiadis said in December.

“The geopolitical game with natural gas is leading the EU economy into a crisis. Greece does not have the most expensive prices, but at this height, it matters little. Coordinated action is needed,” Georgiadis added.