At least at least 2027 will remain objective values of real estateas confirmed in an interview by Deputy Minister of Finance George Kotsiras, attempting to put a “brake” on a new wave of tax burdens for owners.
The decision to “freeze” objective values becomes an official character and opens up a new chapter in real estate tax policy in the coming years.
As Mr Kotsiras said, a possible increase in objective values would trigger a new rise in real estate prices and would carry additional tax burden on citizens. In practice, freezing zone prices means that for at least two years the next two years, the State will not proceed with a new adjustment of objective values, maintaining the tax base at levels of the latest 2022 revision.
Tax Breath for Owners
The choice of stability works mainly for property owners. With the maintenance of objective values at the same level, the taxes calculated on the basis of these: ENFIA, transfer taxes, parental benefits and donations. Especially for areas where they had seen spectacular increases in the latest adjustment – such as Perama, Menidi and areas of Western Attica – this decision prevents a new ejecting tax burdens.
In addition, maintaining zone prices facilitates inheritances and transfers, offering households the opportunity to make any additional costs without fear.
However, objective values are used exclusively for tax purposes and do not directly affect prices that are formed on the market, nor do rents.
In conditions of increased investment activity, especially from foreign funds, the low level of objective values favors transactions and offers tax incentives, but without affecting the upward pressure of the market, which, as has been highlighted, are a matter of limited supply. Rents continue to go up, and young people’s purchasing access remains limited, as the cost of housing is not determined by the objective, but by the imbalance of demand and supply.
It is noteworthy that objective values last changed in 2021, and remain unchanged from January 1, 2022 until today. However, despite the “freeze” of values, real estate prices continue to grow rapidly, expanding the gap between tax and real value. According to official data from the Bank of Greece, in the three years 2022–2024 housing prices increased by about 37.5%, with an average annual rate of above 11%. As a result, the result is a mismatch on the market as transfer taxes and ENFIA are still calculated on the basis of a constant value, while rents and sales prices are moving uninterruptedly and without particularly regulatory counterbalances.