Understanding taxes when buying in Greece
There are different taxes for buying, owning and selling a property in Greece. How much tax you pay will be determined by whether or not you are tax resident in Greece.
If you spend more than 183 days in Greece, you are a tax resident there. But you will also have to pay property-related taxes even if you do not live in Greece. For example, if you own a rental property there.
The Greek tax year runs from January to December, you will have to submit on June 30th.
While we keep this page as up to date as possible, please bear in mind that tax rates can change quickly.
Property purchase taxes
When calculating tax the Greece tax authorities use a system called “objective value” (or tax value). This takes into account objective criteria such as age, size and location of a building, plus access to public facilities. It means that the tax authorities have a minimum value reference.
Transfer tax
When you buy a resale property in Greece, you pay transfer tax (FMA). The tax rate is 3.09% of the taxable property (objective value). This is worked out on the basis of its size, location, and technical specification.
VAT
It used to be that VAT was charged at 24% on new-build properties. However, an exemption was made for new builds in 2019. This may change, so ask the property developer.
Stamp duty
Stamp duty is imposed at 2% of the objective value.
Annual property taxes
ENFIA
The main annual property tax is called the Unified Tax on the Ownership of Real Estate, or ENFIA. It is similar to council tax in the UK or the “millage rate” in the US. You can pay ENFIA as a lump sum or in monthly instalments between September and January.
ENFIA is made up of two components, primary and secondary. The primary tax is levied on each property and is determined by factors such as floor, price zone, building’s age and façade.
If you own a property exceeding €200,000, you will be subject to a secondary tax. This ranges from 0.1 to 1.15%.
TAP (municipality duty)
Telos Akinitis Periousias (TAP) is a municipal tax charged at 0.025% to 0.035% of the objective value of the property. It is usually charged via electricity bills. It will be imposed on the property owner, so if there is a tenant living there is will be deducted.
SRET (Company tax)
If you purchase your Greek property via a company (rather than as an individual) then you will be liable to pay a tax of 15% of the objective value of the property, known as the Special Tax on Property. There are some exemptions, so you should get the advice of a tax expert.
H2: Taxes on income from rental property
If you own a second home in Greece and rent it out, you will have to pay tax on the income earned. This is currently 15% on income up to €12,000, 35% up to the next band of €35,000 and 45% above that.
If you are upgrading the building, for example by making it more energy efficient, then you are eligible for a tax deduction.
If you have more than two short-term rental properties, then this will be classified as a small business, like a hotel, so will have to comply with taxes and fees. Plus, it will be subject to 13% VAT.
Capital gains tax
If you own a property for less than five years before selling, you are subject to a 15% tax on any profit you make. Those that own a home for more than five years do not have to pay capital gains tax.
Inheritance tax
There is a system of enforced heirship throughout Europe, as an EU directive, which means that offspring have to inherit a portion of the estate. However, non-EU citizens can usually have a Will according to their own country.
In Greece, inheritance is assessed on the current value of the property, both moveable and immoveable. Inheritance tax is split into categories, dependent on your relationship to your inheritors, they will pay a different amount of inheritance tax. For example, category A encompasses your spouse, children, grandchildren and parents. For them, €150,000 is tax free, and then there is a sliding scale of 1 – 10%.
Once you have purchased your property, you should draw up a Will with a lawyer.
Getting professional advice
Tax regulations are complex and constantly changing. It is a good idea to have professional advice from an international tax expert for advice when buying, owning and selling property in Greece. You will want to seek the advice of a tax advisor authorised to advise in Greece. If you are moving to Greece, it is even more essential to chat to a tax advisor.