Due to reductions in the Uniform Property Ownership Tax (ENFIA), thousands of owners will benefit if they have insured their homes.
The benefits arising from the listed examples, according to the Free Press, concern owners who have insured homes with taxable values of up to 500,000 euros each by December 31, 2023 at the latest, i.e. those who have insured properties of this category throughout the 2024. For these owners, the maximum rate of discount will apply, which now amounts to 20%, according to what Prime Minister Kyriakos Mitsotakis announced from the “step” of the 88th Thessaloniki International Exhibition.
The secrets
It is recalled – in particular – that based on the Prime Minister’s announcements:
1 Those property owners who have insured homes with an objective value of up to 500,000 euros by the end of 2023 at the latest, which they may own, against risks from fires, earthquakes and floods, are entitled to a 20% discount on the ENFIA of 2025 and the following years.
2 For those who insured or will insure homes worth up to 500,000 euros within 2024, the discount in the 2025 ENFIA will be less than 20%, as it will be calculated in proportion to the insurance period within 2024.
3 For those who have homes with an objective value of more than 500,000 euros which they insured until 31-12-2023 against risks from fires, earthquakes and floods, a 10% discount will apply in 2025 to ENFIA.
4 For those who will insure houses with an objective value of more than 500,000 euros within 2024, the discount to the ENFIA of 2025 will be provided reduced to a percentage lower than 10%, proportional to the time during which these properties appear to be insured within 2024 .
5 However, those owners of homes with an objective value of more than 500,000 euros who leave their homes uninsured from June 1, 2025 onwards will no longer have any right to compensation from the state, if they are damaged by fires or earthquakes or floods. In any case, natural disasters for which the properties must be insured are those caused by fires, earthquakes and floods.
6 Those entrepreneurs who have an annual turnover of more than 500,000 euros must now insure their business premises against the risks of fire, earthquakes and floods. If they do not, the state will not compensate them if the facilities are damaged by such causes. The same will apply in any case of non-renewal of an old insurance contract for vehicles for private or business use.
Who are eligible for exemption?
It is also reminded that according to the provisions already in force from the beginning of 2024, the discount to ENFIA due to real estate insurance is exclusively available to natural persons who have a percentage of ownership in any type of residence and not in commercial real estate. Properties used for short-term rental are considered residences and are eligible for the deduction. If the recipient of the insurance (ie the one who pays the premiums) is a legal entity, but insures a residence owned by a natural person, then the discount is granted to the natural person, in which E9 includes this residence. The discount is calculated both on the main and the supplementary ENFIA, which corresponds to each insured residence.
Conditions to be met
For the discount to apply, the property must be insured for all three risks, i.e. fire, earthquake and flood.
In addition, the insured value should be at least 1,000 euros per square meter of main and ancillary premises listed on the same line of E9, have the same ATAK and their areas are aggregated when calculating the reduction, excluding a significant number of insured owners. An individual accessory building that appears alone with a separate ATAK in E9 is not included in the deduction law.
Source: www.enikos.gr
