The launch of the Real Estate Ownership and Management Registry (MIDA) in early July is changing the landscape of the real estate market, affecting 7.1 million property owners, who will now face fines of up to 1,000 euros, if they do not correctly report the details and use of their real estate in the new digital registry.
An amendment submitted to the omnibus bill of the Ministry of National Economy and Finance (YPETHOO)—which is currently being debated in Parliament—a special framework of obligations and penalties is being introduced to ensure that the Tax Administration has a complete and accurate picture of real estate properties and their use.
Changes are also coming to the ENFIA property tax, from which the state collects approximately 2.3 billion euros annually. The tax will be levied based on the actual floor area of properties, using the Electronic Building ID as a “guide.”
Owners, landlords, and concessionaires are required to declare the property’s use in a timely manner, while tenants and concessionaires are responsible for the accuracy of the information they provide, particularly when it relates to receiving benefits, aid, or subsidies.
Specifically, in cases where real estate is leased or granted free of charge, specific fines are imposed for failure to submit or for submitting inaccurate information regarding its use.
Fines
• The liable party must submit an informational declaration to notify the Ministry of Infrastructure, Transport, and Networks (MIDA) regarding the use of the property. If this declaration is not submitted within three months of the start of the lease or free transfer, a fine of 500 euros will be imposed. The 500-euro fine will primarily apply to owners, lessors, or grantors who fail to declare the use of the property to MIDA in a timely manner.
• A specific deadline is also set for cases related to the Single Aid Application. In this instance, the declaration to notify MIDA must be submitted within two months of the start of the submission period for the Single Aid Application. If this specific deadline is not met, a fine of 500 euros is also imposed.
• For providing incorrect information (beyond the failure to submit the declaration), penalties apply exclusively to the tenant or concessionaire—that is, the person using the property. If the tenant or concessionaire submits a declaration of use containing inaccurate information and that declaration is used to grant allowances, subsidies, or rent refunds, a fine of 1,000 euros is imposed. The penalty is more severe because the inaccurate declaration is linked to a financial benefit or the ability to receive public assistance.
• A lower fine (100 euros) applies in cases where the declarations contain incorrect information but this information has not been used to grant benefits, aid, or subsidies.
E9 Update
The provision further stipulates that when an informational declaration regarding the use of real estate is required, a real estate information declaration (E9) must have been submitted beforehand.
Consequently, before declaring the use of the property to MIDA, the property’s basic details must be up to date.
New ENFIA
Starting in 2027, the Electronic Building ID will also be taken into account when calculating ENFIA, so that the tax is calculated based on the actual floor area of the buildings.
Currently, the ENFIA is determined based on data from the Land Registry, the title deed, or the building permit.
If the actual area of the property is larger than that listed in the Land Registry, the title deed, or the building permit, or if the property’s use has changed, then the tax is calculated based on the actual area and actual use.
Specifically for buildings for which an Electronic Building ID has been issued, if the actual area is smaller than that listed in the Land Registry, the title deed, or the building permit, the area indicated in the Electronic Building ID will be taken into account.
Amnesty
The provision further stipulates that E9 declarations, ENFIA assessment notices, and the corresponding certificates that have already been issued are not considered inaccurate. Furthermore, no penalties will be imposed in cases where the actual area, as evidenced by the Electronic Building ID, is smaller than that listed in the Land Registry, the title deed, or the building permit. The same applies to ENFIA certificates that have already been issued.