New way of controlling the exemption from INFUSIONS in small settlements brings the tax bill of the Ministry of National Economy and Finance which was voted in first reading to the relevant committee of Parliament, as from 2027 the «key» for its confirmation Main residence It will be the Property and Property Management Register.
The exemption from the ESF concerns natural persons, tax residents of Greece who have their main residence in settlements up to 1,500 inhabitants, based on the most recent population census. The regulation excludes the settlements of the Region of Attica, except the Regional Unity of Islands.
A more favourable limit is provided for certain border areas. For Western Macedonia, Evros and the municipalities of Central Macedonia, Eastern Macedonia and Thrace and Epirus that are border-affected, the population limit is up to 1,700 inhabitants.
The regulation, however, does not lead to a general exemption for all properties located in small settlements. It covers only the rights over the taxable person's main residence and provided that the total value of 100% of the full ownership of the residence, as calculated for the imposition of the tax, does not exceed EUR 400,000.
In simple terms, it is not enough for someone to have a home in a small settlement to zero the Enfia. This property should be its main residence, located in an area covered by the provision and located below the value limit set by the law.
The role of MIDA
The new regime provides for a central role in the Property and Property Management Register (MID). MID will be used as a source of information for the main residence, gradually replacing the current image resulting from the income tax declaration. Thus, the exemption will pass through a more specific intersection of the property, its use and the right that the taxpayer has over it.
Change is of practical importance to owners, because the data to be displayed in the MID will be directly linked to the application of the exemption. If the image of the main residence, the type of right or the characteristics of the property are not correct, recognition of the right to exemption from tax may also be affected.
The bill also provides for additional rules on the increase in the tax on natural persons based on the total value of real estate. In order to calculate this value, the value of the property rights exempted from the EFSI will not be taken into account on the part of the exemption.
Until MID is put into productive operation, the main residence for the application of the exemption will continue to emerge from the statement of income tax of the previous tax year for which the deadline for the submission of the declarations has expired.
