With the time counting down to the payment of the first installment of ENFIA property owners have the opportunity to correct errors and omissions in their property data that they have identified in the new property tax “bill”.
Before paying the first installment by Wednesday, May 31, 2023, review the settlement statement, check for any errors and correct the information in your real estate. Errors and omissions are corrected by submitting an amending statement E9 on the basis of which the tax will be recalculated and a new invoice will be issued.
ENFIA: More than 1 million property owners will not pay
Corrections can be made in time until June 30, 2023. After that, AADE will proceed with a new liquidation of ENFIA, which will have to be paid in equal monthly installments of no less than 10 euros until February 29, 2024.
Depending on the type of errors and omissions in the property descriptions the tax reduction can range from 20% to 90%
Particular attention is needed in the following points where most errors are found:
1. Unfinished buildings. Check whether the tax deduction has been calculated for your unfinished buildings. If you own an unfinished empty building, check whether the ENFIA imposed on this property has been calculated with the statutory 60% discount. If the discount has not been calculated then it is most likely that you have not updated the particulars of your particular property on your E9 return and you will need to correct the omission.
2. Plot of land with building. If you have a plot of land with buildings, make sure you have declared them correctly in E9. In the event that there is a building within a parcel of land which is used as a residence, the tax of the parcel of land is increased fivefold. If the building is not a residence, but an agricultural building or warehouse or business premises, the tax is not quintupled. Therefore, if you have a plot of land on which there is a building, which is not a residence, but an agricultural building or a warehouse or a commercial building, check whether the specific building appears to be declared as a residence in the ENFIA clearing house.
4. Rights in rem. Check whether you have correctly declared your rights in rem (full or partial ownership, usufruct). There are cases of taxpayers who have the small ownership or usufruct of real estate and have been charged additional ENFIA, because in E9 they did not declare small ownership or usufruct, but full ownership, by writing code 1 instead of codes 2 or 3 in the relevant columns of E9. In case of non-listing or listing of an incorrect type of real right, the property is considered to be fully owned by the taxpayer, as long as the beneficiary’s year of birth for the specific right is blank.
5. Percentage of co-ownership: It may seem like an innocent mistake but it costs taxpayers since in case of non-declaration or incorrect percentage of co-ownership, 100% percentage of co-ownership is taken.
6. Floor: One of the common mistakes taxpayers make is forgetting to fill in the floor their apartment is located on. In case of not filling in the floor number or filling in the floor of the property as a roof, the highest rate corresponding to the 6th floor is taken to calculate the tax. In the case of maisonettes, many declare as floor the floor where the entrance to the residence is located, while the highest floor must be declared.
More than 6.1 million property owners are required to pay tax for their properties this year, which in total reaches 2.268 billion. euro. The tax will have to be paid in 10 equal monthly installments with the first due on 31 May 2023 and the last on 29 February 2024.
Those who are unable to follow the planning of the Ministry of Finance for paying the tax in 10 installments have the possibility to include the debt:
1. In the permanent arrangement which provides for:
a) Up to 12 monthly installments charged with an annual interest rate of 4.34%
b) 13 to 24 monthly installments charged with an annual interest rate of 5.84%.
2. In 12 equal interest-free monthly installments by credit card.