Taxes on Buying Property in Greece

When purchasing property in Greece, buyers are required to pay either a transfer tax or VAT. The same rules apply whether the property is bought by an individual or a company. The tax type and rate depend on the property’s nature.

VAT (Value-Added Tax): If the property has been occupied or if a construction permit was issued after January 1, 2006, VAT applies at a rate of 24%. However, properties for which construction permits were issued after January 1, 2006, including newly built apartments, are exempt from VAT until December 31, 2025.
Transfer Tax: For properties not subject to VAT, the buyer must pay a transfer tax of 3.09% of the higher of the property’s cadastral value or purchase price (with a 3% transfer tax and an additional 0.09% municipal tax). The buyer must pay this tax before the transaction is completed, and the tax payment documentation must be presented to the notary in advance.

In addition to the purchase tax, buyers should also budget for additional expenses like notary, registration, legal fees, and real estate agent commissions.

Taxes on Owning Property in Greece

ENFIA (Single Property Tax)

The ENFIA is an annual property tax introduced on January 1, 2014, applicable to individuals and legal entities. It consists of two parts: the main part and the additional part. The rate for the main part varies between €2 to €16 per m², depending on factors like area, cadastral value, and property age.

For legal entities, there is an additional levy of 5.5% of the property’s cadastral value.
Preferential rates of 1% of the cadastral value may apply if the property is used for business purposes.

Depending on the property’s location, there is also a municipal property tax, ranging from 0.025% to 0.035%. Additionally, owners pay fees for services like trash removal, public area cleaning, and lighting.

From 2025, a 20% reduction in the ENFIA tax will apply to properties insured against natural disasters (e.g., fire, earthquake, flood) with a taxable value of up to €500,000, provided the insurance has been active for at least three months in the previous year.
SRET (Special Real Estate Tax)

The Special Real Estate Tax (SRET) is charged at a rate of 15% of the property’s cadastral value by companies owning Greek real estate. Companies can benefit from a tax exemption if they disclose their beneficiaries’ names and register their Greek tax identification numbers or if their active income exceeds passive income.

Rental Income Tax

The tax rate on rental income varies depending on whether an individual or a company earns the income.

For individuals, rental income is taxed based on the amount earned:
€0–€12,000: 15% tax rate
€12,001–€35,000: 35% tax rate
€35,001–€40,000: 37% tax rate
Above €40,000: 45% tax rate

Property maintenance costs (estimated at 5%) can be deducted from the tax base.

For companies, rental income is taxed at the corporate rate of 22%, with property maintenance costs fully deductible.

From 2025, long-term rental homes are eligible for a three-year income tax exemption. The property must:

Be no larger than 120 m²
Be rented for at least three years between September 8, 2024, and December 31, 2025
Have been declared vacant or used for short-term rentals in previous years

Taxes on Selling Property in Greece

Capital gains tax on property sales is applied differently to individuals and companies.

For individuals, capital gains tax is not levied until December 31, 2026, provided the seller does not sell more than two properties within two years and the sale is not considered a business activity. If the sale is treated as business income, the tax rate depends on the amount earned:
€0–€20,000: 15% tax rate
€20,001–€30,000: 29% tax rate
€30,001–€40,000: 37% tax rate
Above €40,000: 45% tax rate
The capital gains tax rate for companies is 22%, calculated based on the profit made from the sale (the difference between the selling price and the property’s value listed in the company’s balance sheet).

Inheritance Tax in Greece

Inheritance tax in Greece is determined by the value of the inherited property and the relationship between the deceased and the inheritor. The tax rates range from 1% to 40%, with the base amount exempt from tax depending on the relationship.

Category A (spouses, children, grandchildren, parents):
First €150,000 is exempt
Amounts exceeding €150,000 are taxed at 1%–10%, with higher rates for larger inheritances.
Category B (other close relatives):
First €30,000 is exempt
Amounts exceeding €30,000 are taxed at 5%–20%.
Category C (other relatives):
First €6,000 is exempt
Amounts exceeding €6,000 are taxed at 20%–40%.

Each heir can receive up to €150,000 without paying inheritance tax if they belong to Category A.

This overview of taxes for property owners, buyers, and sellers in Greece should help foreign investors understand the current landscape and plan accordingly. Be sure to stay updated on any changes to tax laws, particularly with the exemptions and reductions set to apply in the coming years.

 

πηγή.https://www.dnews.gr/eidhseis/news-in-english/511451/greece-s-real-estate-transfer-tax-deadlines-process-and-payment