What is the ENFIA tax in Greece: An investor's guide

What is the ENFIA tax in Greece

ENFIA is an annual tax on property ownership in Greece. It must be paid by both individuals and companies who, as of January 1st of the relevant year, are owners of apartments, houses, villas, land plots, or hold other property rights.

This tax is levied regardless of the owner’s citizenship or country of residence. Therefore, a foreign investor purchasing property in Greece must account for ENFIA in their annual property maintenance expenses.

How ENFIA is calculated

The tax amount is not a fixed percentage of the purchase price. The calculation is performed individually for each property based on the data entered into the E9 property declaration. The final amount is influenced by the following factors:

• Area and type of the property.
• Location and the state-determined objective value of the area.
• Floor, age of the building, and its technical characteristics.
• Owner’s share of ownership.
• Presence of auxiliary spaces.
• Total value of all properties owned by the owner in Greece.

Consequently, two apartments of the same size may be subject to different taxes if they are located in different areas or have different characteristics.

The role of the E9 declaration

After purchasing a property, details about it must be entered into the electronic E9 declaration via the myAADE system. This requirement applies to both Greek residents and foreign owners.

The tax authority uses data from the E9 to calculate ENFIA and generate the payment notice. Any error in specifying the area, ownership share, floor, or purpose of the premises can lead to incorrect tax assessment. Therefore, it is crucial after the transaction to ensure that the property is entered into the E9 in strict accordance with the notarial deed and cadastral documents.

Tax payment procedure

ENFIA is charged to the owner who held the property on January 1st of the current year. The payment notice appears in the taxpayer’s personal account on the myAADE portal.

The tax can be paid either as a lump sum or in installments, according to the schedule published annually by tax authorities. If the property was sold after January 1st, the obligation to pay ENFIA for that year generally remains with the person who was the owner at the beginning of the year.

Exemptions and optimization

Exemptions are provided for certain categories of owners. In particular, it is possible to reduce the tax burden for residential properties insured against earthquakes, fire, and floods, provided that state-established conditions are met. Since requirements for exemptions can change, eligibility must be checked annually.

Budget planning with AILIT Group

The exact amount of tax cannot be determined solely by the market price of the property. Although the previous owner’s ENFIA notice can serve as a guide, it does not always reflect future assessments for the new owner.

AILIT Group helps investors estimate the full budget of property ownership, including taxes, insurance, maintenance, and property management.

Explore real estate investments in Crete, view AILIT Group projects, and learn more about real estate construction in Greece.

Conclusion

ENFIA is a mandatory annual tax, the amount of which depends on the characteristics of the property recorded in the E9 declaration. To avoid overpayments and arrears, a foreign owner must approach property registration responsibly, check notifications in the myAADE system in a timely manner, and adhere to payment deadlines.