The unified real estate holding tax (ENFIA) is payable yearly by individuals and legal entities.
The property tax is payable based on the “basic tax”, which depends on the objective value of the property. Thus, the owner of real estate with objective value under EUR 500.00 per square meter is taxed at the rate of EUR 2.00 per square meter, and the owner of real estate with objective value over EUR 5,000.00 per square meter is taxed at the maximum rate of EUR 13.00 per square meter.
The annual real estate holding tax includes both the basic property tax and the supplementary tax. The basic property tax is applicable to buildings, land lots, agricultural land etc. The basic tax is then multiplied by several other factors, including but not limited to the location of the property, age of the property, the floor level and the number of facades of the property.
The supplementary tax is applicable to property with objective value of over EUR 300,000.00 per single owner and EUR 600,000.00 for joint ownership. The supplementary tax rate varies from 0.1% to 1%.
The landlords are also subjected to income tax regarding the income sourced from renting out reals estate, which tax is the following:
- For income under EUR 12,000 the tax rate is at 15%;
- For income over EUR 12,000 and under EUR 35,000 the tax rate is at 35%; and
- For income over EUR 35,000 the tax rate is at 45%.