New property taxes loom for Greek homeowners

Greek property owners face potentially significant new financial burdens under a draft Local Government Code currently under public consultation. The proposed legislation introduces two new property taxes that could collectively triple the current charges for homeowners.

The new taxes include the Local Development Fee, which will replace the existing Real Estate Property Fee (TAP) and the Tax on Electrified Areas (FCH). This new fee is expected to be higher, calculated on a rate ranging from 0.3 to 0.7 per thousand based on property size, objective value, and age.

Additionally, a Regional Development Fee will be introduced, with rates from 0.15 to 0.35 per thousand of the property's objective value. Revenue from this fee is earmarked for regional development projects. For an 80 sq. meter property valued at 160,000 euros and over 25 years old, the estimated annual cost for these two new fees could reach 123 euros, potentially higher if maximum rates are applied.

These combined fees could amount to a rate of 0.35 to 1.05 per thousand, depending on local government policies. The Hellenic Federation of Property Owners (POMIDA) notes similarities to the old ETAK tax, a precursor to the current ENFIA property tax. The new fees are scheduled to be implemented from January 1, 2027, provided the bill passes without amendments. The proposal comes as objective property values, which have remained static since 2021, are due for reassessment.