New Property Declaration Rules in Greece and Changes to ENFIA Tax Calculation

Greece continues the digital transformation of its real estate market. The Ministry of National Economy and Finance has introduced a legislative amendment providing for the creation of the Property Ownership and Management Register (MIDA), new rules for declaring the use of real estate assets, and a revised methodology for calculating the annual ENFIA property tax starting from 2027.

The primary objective of the reform is to consolidate information on ownership, leases, and the actual use of properties into a unified digital system, thereby reducing errors in state registries and enhancing transparency in tax administration.

To ensure compliance and avoid unexpected penalties, it is essential to understand the details of these new regulations.

What is MIDA?

MIDA (Μητρώο Ιδιοκτησίας και Διαχείρισης Ακινήτων) is a new digital property register that will serve as the centralized information system for real estate accounting across Greece. This registry will integrate and cross-reference the following data:

• Information on property owners;
• Information on tenants/lessees;
• Details regarding properties granted free of charge (free concessions);
• Data from E9 tax declarations;
• Unique identifiers, specifically ATAK (Property Property ID number) and KAEK (National Cadastre Code Number);
• Information on the actual, physical use of the property.

Consequently, the Independent Authority for Public Revenue (AADE) will be able to automatically cross-check data from various state registries and instantly detect any discrepancies.

New Obligations and Declaration Deadlines for Owners

Following the official launch of the system, property owners will be required to promptly report any changes in the usage status of their properties. This applies to all instances where a property is rented out or granted to third parties on a free-concession basis.

Strict timeframes have been established for submitting these declarations:

• Standard Urban and Commercial Properties: The declaration must be submitted to MIDA strictly within 3 months from the commencement of the lease or free concession. Failure to comply will result in a standard administrative fine of 500 euros.
• Properties in Rural Areas: If the land plots or buildings are linked to single agricultural aid applications, the deadline for updating the information is reduced to 2 months from the start of the official application period.

Data Transparency and Penalty Scale

The new regulations are designed to eliminate loopholes for the improper or abusive utilization of state aid and subsidies. To achieve this, a flexible, tiered approach to financial penalties has been introduced:

• Failure to Meet the Submission Deadline: A fixed fine of 500 euros applies to owners who fail to submit the declaration within the 3-month or 2-month window.
• Technical Errors or Inaccurate Declarations: If a declaration contains non-intentional errors or inaccuracies that did not result in financial gain (such as unlawful receipt of benefits), the fine is limited to 100 euros.
• Intentional Misrepresentation for State Benefits: The severest penalty is reserved for fraudulent declarations. If false information in the MIDA system is used to unlawfully receive benefits, subsidies, or state compensations (e.g., energy subsidies), the fine amounts to 1,000 euros. Notably, liability under this provision extends beyond the owner to include the actual applicant-user (the lessee or concessionaire).

ENFIA Tax Calculation Reform from 2027

Beginning in 2027, the calculation of the Single Property Tax (ENFIA) will transition entirely to modern digital standards. The tax authority is adopting the principle of prioritizing actual, certified engineering parameters over legacy archival records.

If the actual internal surface area of a building or unit is found to be smaller than what is stated in older title deeds, purchase contracts, cadastral records, or the original building permit, the historical documents will no longer be used as the baseline.

The definitive and indisputable source for ENFIA tax assessment will be the Building’s Electronic ID (Ηλεκτρονική Ταυτότητα Κτιρίου). Tax calculations will be based strictly on the metric measurements verified and recorded within this digital property profile.

Practical Recommendations for Property Owners

To ensure a seamless transition under the updated legislation, property owners are advised to take three practical steps:

1. Verify Current Lease Status: Ensure that all active rental agreements or free concession arrangements are promptly submitted via the Taxisnet platform and accurately reflected in the MIDA database.
2. Cross-Check Aid Application Data: Meticulously verify that the declared surface area and property usage match the official registries when applying for state benefits or compensations.
3. Obtain or Update the Building’s Electronic ID: If you are preparing a property for a transaction or wish to verify your tax baseline, it is highly recommended to proactively engage a certified engineer to audit the actual square meters and update the digital file.