Greek government scraps regional ENFIA tax, keeps municipal development levy

The Greek cabinet withdrew the proposed regional property charge (ΤΠΑ) from the final Local Government Code that was under public consultation. Instead, the legislation retains a municipal levy, the Tax on Local Development (ΤΤΑ), which will replace the former Property Tax (ΤΑΠ) and the Electricity‑related Property Tax (ΦΗΧ).

From 1 January 2027, all property owners will pay the new TΤΑ, calculated by each municipality using a rate between 0.3‰ and 0.7‰ of the property’s assessed value. Collection will occur through monthly electricity bills, following the same mechanism used for the previous taxes. Municipal councils may raise the rate above 0.7‰ only with a specially justified decision when a financial report shows that lower rates would generate less than 95 % of the revenue previously collected from ΤΑΠ and ΦΗΧ for the 2025 fiscal year.

Analysts expect that for many Greek towns the burden from the TΤΑ will be similar to, or lower than, current charges, because the new levy largely mirrors the revenue of the abolished taxes.