Property Taxes in Greece: Complete Buyer's & Seller's Guide

Property taxation is one of the most critical factors to evaluate when purchasing real estate in Greece. Understanding the applicable taxes, statutory fees, and available exemptions before signing formal contracts allows prospective buyers to budget accurately and avoid unexpected closing costs. In this comprehensive guide, we examine the current Greek tax framework for buying property, primary residence tax exemptions, and the digital tax declaration process.

1. Key Property Transaction Taxes in Greece

Greek tax legislation imposes specific charges during property transfers, depending on whether you are the buyer or seller and the characteristics of the property itself. The primary transaction taxes include:

• Real Estate Transfer Tax (RETT / ΦΜΑ): Paid exclusively by the buyer; applies to the vast majority of secondary market property transactions.
• Value Added Tax (VAT 24%): Paid by the buyer; applies to specific categories of newly constructed developments.
• Capital Gains Tax: Paid by the seller on the net profit realized between the original acquisition price and the final sale price.

Important Policy Update: The Greek government has suspended the imposition of 24% VAT on new building constructions as well as capital gains tax through the end of 2026. This suspension creates an exceptionally favorable environment for homebuyers and real estate investors by significantly lowering acquisition costs.

2. Real Estate Transfer Tax (RETT) and Municipal Surcharge

The standard Real Estate Transfer Tax is calculated at a flat rate of 3% on the taxable property value. The taxable value is determined as either the state-assessed objective value or the actual market price stated in the contract, whichever is higher. In addition to the base 3% tax, a local municipal surcharge equal to 3% of the transfer tax amount is levied. In practice, the total transfer tax tax burden for the buyer amounts to exactly 3.09% of the property transaction value.

Primary Residence Transfer Tax Exemption

Greek law provides substantial tax relief for buyers purchasing their primary residence in Greece, granting a full exemption from transfer tax up to specific statutory value thresholds:

• For single buyers, the exemption covers property values up to €200,000.
• For married couples or civil partners without children, the exemption threshold is €250,000.
• The tax-free threshold increases by €25,000 for each of the first two children, and by €30,000 for the third and each additional child.

To qualify for this exemption, neither the buyer nor their immediate family members may own another residential property or building plot in Greece that already fulfills their statutory housing needs based on area requirements.

3. Value Added Tax (VAT 24%) and Current Suspension

The standard 24% VAT rate applies to the purchase of newly built properties for which the building permit was issued on or after January 1, 2006, provided the developer has not opted for the VAT suspension scheme. When VAT applies, the buyer is exempt from the 3% transfer tax. However, because the Greek government has actively suspended VAT on new constructions through 2026, buyers of brand-new apartments currently pay only the 3.09% transfer tax, resulting in immense financial savings.

Primary Residence Exemption from VAT

If a buyer qualifies for a primary residence exemption when acquiring a newly built property that would normally be subject to VAT, they are completely exempt from paying the 24% VAT and are instead taxed under the standard transfer tax rate (3.09%), while utilizing the statutory tax-free allowance tiers.

4. Capital Gains Tax on Property Sales

Capital gains tax is the responsibility of the seller and is calculated at a flat rate of 15% on the net profit generated from the sale, adjusted for inflation over the holding period. The implementation of this tax remains suspended by law, relieving property owners from paying capital gains tax on all residential real estate sales completed through the end of 2026.

5. Digital Tax Filing via the myPROPERTY Platform

Property tax declarations in Greece have transitioned to a fully digital workflow via the Independent Authority for Public Revenue (AADE) myPROPERTY portal. The transfer tax declaration is drafted and submitted online by the notary public, digitally confirmed by both buyer and seller using their secure TAXISnet credentials, and the resulting tax is paid directly by the buyer via online banking before the final purchase deed is executed.

6. Essential Advice for Property Buyers and Sellers

To ensure a smooth, financially secure property transaction in Greece, follow these strategic guidelines:

1. Verify eligibility for exemptions: Consult with a qualified legal or tax advisor early in the process to confirm whether you qualify for primary residence tax relief.
2. Budget for total closing costs: Beyond transfer taxes, ensure your budget accounts for notary fees, Land Registry and Cadastral registration charges, legal representation fees, and agency commissions.
3. Partner with experienced professionals: Working with an established real estate agency ensures thorough due diligence, accurate documentation, and the avoidance of bureaucratic delays.
4. Capitalize on tax suspensions: The ongoing suspension of VAT makes the present period exceptionally advantageous for acquiring modern, energy-efficient new developments.

Conclusion

Mastering the Greek property tax framework is essential for making a sound, secure real estate investment. By planning ahead and taking full advantage of available statutory exemptions and temporary tax suspensions, buyers can significantly reduce acquisition costs and complete their purchase with complete confidence.

For professional guidance and access to premium real estate opportunities tailored to your needs, contact our team today. You can also read our detailed guide on calculating real property values in Greece.