ENFIA: Changes in Income Calculation and Discounts Due to Evidence

The Independent Authority for Public Revenue (AADE) has set limits on evidence affecting ENFIA discounts, radically changing how income is determined for those eligible for reductions or full exemptions. With a new AADE decision (A.1042/2025), the tax administration broadens the scope of considered incomes for ENFIA, including not only salaries, pensions, business incomes, and unemployment benefits but also documented incomes and objective living costs. As a result, taxpayers who previously secured discounts due to low reported income might lose them as authorities will now factor in evidence from properties, vehicles, deposits, and other living expenses. For a 50% ENFIA discount, the total taxable family income of the last tax year must not exceed €9,000, increasing by €1,000 for each spouse or dependent member. Additionally, property size should not surpass 150 sqm, and total real estate value thresholds are set based on family composition. Full exemptions apply to families with three or more children and individuals with over 80% disability if their income does not exceed €12,000 and property size is up to 150 sqm. Moreover, discounts are available this year for 359,494 insured property owners against natural disasters totaling €21 million. In 2024, the home insurance discount increases to 20% for properties valued under €500,000, adjusted proportionally for shorter coverage periods. The total ENFIA collection for 2023 reaches €2.3 billion involving over 6.1 million taxpayers. Payments start by March 31 via IRIS, myAADE portal, web banking, or myAADEapp. The most significant change involves evidence impacting final income calculations, potentially raising ENFIA for tens of thousands of owners who previously benefited from discounts.