Greek authorities face growing pressure to adjust state property zone prices as commercial housing market rates outpace official tax values across the country.
The widening gap between objective tax values and real market prices has intensified discussion over whether technical preparations for new zone prices should start in 2027. Under proposed timelines, the revised prices would take effect from 2028.
Greece last updated its property zone rates in June 2021. That adjustment included changes to the calculation of ENFIA, the national unified property ownership tax, to reduce financial burdens on small and medium property holders. However, commercial prices have risen significantly since that revision, broadening the gap.
Regional property price gaps
In Greece, real estate taxes and municipal fees rely on state-determined objective values, which set fixed rates per square metre for specific zones. Substantial discrepancies between these official tax assessments and actual real estate transaction prices are now evident in major urban areas.
In Peristeri, a populous municipality in western Athens, the highest state zone price is set at 1,550 euros per square metre. In contrast, asking market prices in the area currently range between 2,120 euros and 2,750 euros per square metre.
A wider gap exists in Chalandri, a northern suburb of Athens. The maximum objective value in Chalandri reaches 2,100 euros per square metre, while commercial market prices exceed 4,000 euros per square metre.
Similar disparities are present in Thessaloniki, the second largest city in Greece. Outside the coastal waterfront area near Aristotelous Square, the maximum zone price is 2,100 euros per square metre, while market prices reach up to 3,100 euros per square metre.
Tax fairness and housing crisis concerns
The widening disparity is the main argument for those who advocate for a faster convergence of objective values and commercial rates. Proponents argue that when contract values remain lower than actual transaction amounts, the opportunity for undeclared cash payments and illicit money circulation increases.
Conversely, critics warn that a sharp increase in objective values could create a chain of tax burdens at a time when the housing crisis remains severe. A tax adjustment of even 50 percent would increase property transfer taxes and affect numerous other charges tied directly or indirectly to zone prices.
Upcoming ENFIA property tax exemptions
Alongside discussions on zone prices, tax authorities have scheduled updates to annual property charges. Starting in 2027, natural persons whose main residence is located in settlements with a population of up to 2,000 residents will no longer pay ENFIA.
The tax relief measure applies across Greece, with the exception of the capital Region of Attica, excluding its Regional Unit of Islands. In Western Macedonia, a mountainous region in northern Greece, the population limit for the exemption increases to 2,200 residents.
The extension of the tax exemption covers 131 additional settlements and applies to approximately 62,000 property owners. This expansion brings the total number of Greek settlements receiving the ENFIA property tax exemption to 12,855.
