Greece is preparing a major overhaul of local property taxation that could significantly raise annual charges for homeowners from 2027, introducing what critics have already dubbed a “municipal ENFIA” — a reference to the country’s national property tax.
Under a new Local Government Code currently under discussion, the existing municipal property levy, known as the Property Asset Fee (TAP), will be abolished from January 1, 2027, and replaced by a new Local Development Fee. At the same time, regional authorities will gain the power to impose an additional Regional Development Fee, creating a dual-layer system of local taxation on real estate.
If municipalities and regions opt for the highest rates permitted under the legislation, the combined burden on property owners could reach 1.05 per thousand of a property’s assessed value — triple the current maximum rate applied under the existing TAP system.
The reform marks one of the most significant shifts in Greece’s property taxation framework in years, transferring greater revenue-raising authority to local governments while broadening the fiscal burden on real estate ownership.
The new municipal levy would be set by local councils at rates ranging between 0.30 and 0.70 per thousand of the total value of property holdings. The current TAP system operates within a narrower band of 0.25 to 0.35 per thousand.
Lawmakers had reportedly examined even higher rates during earlier discussions, though the final draft reduced the upper threshold. However, the addition of a regional tax effectively restores the overall burden initially considered.
Under separate provisions, regional governments would be allowed to impose an optional Regional Development Fee ranging from 0.15 to 0.35 per thousand, with rates varying by administrative district.
The changes have revived comparisons with Greece’s national property tax, ENFIA, because they create, for the first time, a structured property tax framework benefiting municipalities and regional authorities directly and calculated on property value rather than solely on size or use.
At full implementation, the combined local tax burden would even exceed the base rate of ETAK, the predecessor to modern ENFIA, which had been set at 1 per thousand.
The new system would apply broadly across residential, commercial and other forms of real estate located within municipal boundaries, including urban properties, settlements established before 1923, villages with fewer than 2,000 residents and even buildings outside designated urban planning zones. It would also extend to transferable building rights — known in Greece as “air rights” — when included in property deeds.
Certain categories would remain exempt, including state-owned properties, religious institutions, charities, diplomatic missions and international organizations. Exemptions would also apply to common areas in apartment buildings, heritage properties that generate no income, monuments and properties subject to urban planning or archaeological restrictions.
Collection mechanisms will remain largely unchanged. The charges will continue to be billed through electricity accounts, with municipalities transmitting property data to the national power distribution operator and annual amounts spread across utility bills.
The legislation also includes strict enforcement provisions. Failure to pay three consecutive monthly electricity bills, or one quarterly bill, could lead to electricity disconnection until debts are settled. Property owners who fail to declare assets correctly would face penalties equal to twice the unpaid amount.
The reform will also eliminate Greece’s tax on electrified spaces from 2027. Yet market participants argue that the removal does little to offset the new burden because the abolished tax largely affected users and tenants, while the new regime falls exclusively on property owners.
Unlike the regional levy, whose proceeds would be earmarked specifically for infrastructure and development projects, revenues from the municipal fee would not be tied to designated spending and could be used to finance broader local government needs.
The financial impact becomes more visible in practical examples. A property with an assessed value of €100,000 currently pays up to €35 annually under the existing TAP system. Under the new framework, that charge could rise to €105 if both municipal and regional authorities apply the maximum rates.
For properties worth €200,000, annual charges could increase from €70 today to €210. A €400,000 property could see annual local taxation rise from €140 to €420, while owners with real estate holdings valued at €1 million could face yearly charges of €1,050, compared with €350 under the current regime.
Municipal councils are expected to determine final rates during 2026, paving the way for implementation at the start of 2027 and ushering in a new era of locally driven property taxation in Greece.
