The ENFIA property tax reduction for insured residential properties officially applies to the 2026 tax year, offering significant tax relief to individual property owners who have insured their homes against earthquake, fire, and flood risks. This measure aims to encourage property insurance while providing meaningful tax incentives to homeowners who proactively protect their real estate assets.
ENFIA Reduction Rules for 2026
The ENFIA tax reduction for 2026 depends on two key factors, the duration of the insurance coverage and the taxable value of the property.
ENFIA Discount Rates Based on Property Value
For the 2026 tax year, an ENFIA property tax reduction is granted based on the taxable value of the residential property and the duration of insurance coverage. Specifically, a 20% ENFIA reduction applies to residential properties with a taxable value of up to €500,000, provided they are insured for a full 12-month period against earthquake, fire, and flood risks, while properties with a taxable value exceeding €500,000 are eligible for a 10% ENFIA reduction under the same insurance conditions.
Partial-Year Insurance Coverage
If the insurance coverage lasts less than one year, the ENFIA reduction is calculated proportionally, with a minimum eligible insurance period of three (3) months.For insurance valuation purposes, the reconstruction value is set at €900 per square meter. Notably, policyholders may now submit certification documents even for group insurance contracts, expanding eligibility under the updated framework.
How to Apply for the ENFIA Reduction
The application process is fully digital and must be completed by the taxpayer through the myAADE platform, following this path: Applications → Popular Applications → myPROPERTY → ENFIA Reduction for Insured Residences
Application Deadline
The application deadline for the ENFIA reduction is February 16, including the submission of any necessary corrections. Following submission, insurance companies verify the insurance policy details, while the Independent Authority for Public Revenue (AADE) conducts the required checks to confirm compliance with the eligibility criteria. Once the verification process is completed, the ENFIA property tax reduction is applied during the first central tax assessment, ensuring that eligible taxpayers receive the benefit automatically.
Why Early Preparation Matters
Although the process is digital, errors or omissions in insurance policy data are common and may result in the loss of the ENFIA reduction. For this reason, early preparation and careful data verification are essential before submitting the application. Accurate tax compliance and informed decision-making are fundamental pillars of effective property management. You can explore more tax-related articles and expert insights on the Link Consulting blog. For those seeking a deeper understanding of the legal framework and official announcements, specialized tax resources, such as the analysis published by Taxheaven, provide valuable additional guidance.
Need Assistance with the ENFIA Reduction Process?
If you are unsure whether you meet the eligibility requirements or need professional support with the application process, Link Consulting is here to help. Our team provides responsible guidance and personalized support, ensuring that you secure every tax benefit you are entitled to.
Because effective property tax planning starts with accurate information and expert support.
