Understanding Real Estate Taxation in Greece: A Guide for Investors

When it comes to acquiring real estate in Greece, understanding the local tax framework is essential.

This article outlines the key tax implications involved in direct and indirect real estate acquisitions, for both individuals and companies, whether resident or non-resident.

Direct Purchase of Real Estate

A direct purchase refers to acquiring property in your name (individual or corporate). Below are the primary tax considerations based on your residency status:

For Individuals (Resident & Non-Resident)

• Transfer Tax: A 3% tax is applied to the objective (tax-assessed) value of the property. This cost is borne by the buyer.

• Value Added Tax (VAT):

  • Properties are generally exempt from VAT.

  • However, new buildings sold before their first occupancy are subject to 24% VAT, effective from 1 January 2024.

Note: Non-resident individuals are taxed under the same rules as residents.

For Companies (Resident & Non-Resident)

• Transfer Tax: A 3% tax on the objective value applies, payable by the buyer. This cost can be capitalized into the acquisition value.

• Value Added Tax (VAT):

  • As with individuals, real estate is VAT-exempt.

  • From 1 January 2025, newly constructed properties sold prior to first use are subject to 24% VAT.

  • If VAT applies, transfer tax is not levied.

Non-resident companies are treated the same as Greek companies, as property ownership is considered to create a permanent establishment in Greece.

Indirect Purchase of Real Estate

An indirect purchase involves acquiring shares in a company that owns Greek real estate, rather than the property itself.

For Individuals (Resident & Non-Resident)

• Transfer Tax: No transfer tax applies to the purchase of shares in real estate-holding companies.

Non-resident individuals are treated the same as residents.

For Companies (Resident & Non-Resident)

• Transfer Tax: Not applicable to share acquisitions.

• Fiscal Unity: Greece does not offer a fiscal unity regime, meaning each company is taxed independently.

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