Owning a property in Greece is a dream for many, whether you want to live in this beautiful part of the Mediterranean permanently or invest in property.
Perfect weather, crystal clear coves, golden sand and delicious food – it’s a tempting option when faced with grey skies and rain for most of the year. Many people are choosing to make the relaxed lifestyle a long-term way of life and investing in property in Greece.
So let’s look at the implication of property taxation in Greece so you’re absolutely clear if you’re planning to follow your dream of living under the Mediterranean sun.
Initial taxes
When you purchase a property in Greece there are certain taxes to be paid:
Transfer tax
This one-time payment, currently at 3.09%, is charged on the property’s value, taking into account its size, location and specification. This tax applies to existing properties and plots of land.
VAT
VAT on property purchase is charged at the standard rate of 24% for both completed or buildings to be renovated that were given a building permit after 1 January 2006. Properties built before this date are exempt from VAT.
New property sales:
This is an important situation to monitor. From 2006 until the end of 2024, the rate of VAT on new properties has been put on hold. This means there is no VAT to pay on new builds with planning permission issued after 2006, until January 2025.
House prices are increasing in Greece, with property purchases in 2023 representing €3 billion. However, in general, property prices in Greece are still cheaper than in much of Europe, making this a good time to buy.
Ongoing taxes
In addition to the initial property taxes, there are ongoing taxes to factor into your budget when buying a property in Greece:
Annual property tax
Known as ENFIA (the Uniform Real Estate Property Tax) this tax ensures a contribution to the local infrastructure and services you benefit from, such as waste collection and public spaces.
ENFIA is calculated based on a combination of factors linked to the property’s value. The most significant is the property’s objective value, which is determined by the Greek government and considers size, location and age similar to how the transfer tax is calculated. Location is also a variable – a property in an exclusive area of Athens or a popular coastal town such as Mykonos will be charged more than an inland property in an unknown location.
For this reason, it’s essential to consider the area carefully when looking at regions and cities to invest in Greece.
Income tax
It’s important to note that ENFIA is separate from the income tax you might incur if you rent out your property. If you buy a property in Greece and rent it out to tourists or long-term tenants you will have to pay tax on the income.
The rate you will be charged depends on the income you receive. This is a progressive rate, as can be seen in this table:
| Income | Taxe rate |
|---|---|
| €10,000 or less | 9% |
| €10,000-€20,000 | 22% |
| €20,000-€30,000 | 28% |
| €30,000-€40,000 | 36% |
| More than €40,000 | 44% |
Inheritance tax
Inheritance tax is only paid if you pass the property on to theirs including children and grandchildren. Of note is that there is no inheritance tax if the property is valued less than €150,000.
| Property value | Tax rate |
|---|---|
| €150,000 or less | 0% |
| €150,001-€300,000 | 1% |
| €301,000-€600,000 | 5% |
| More than €600,001 | 10% |
Capital gains tax
Any profit you make on selling a Greek property that you have owned for less than 5 years is taxable. This tax is a flat 15% of the profit you make. The profit is calculated by subtracting your original purchase cost and related expenses from the selling price. However, if you’ve had the property for five years or more, you won’t owe capital gains tax.
Golden Visa tax benefits
The Greek Golden Visa offers residency in Greece in exchange for a significant investment. The latest 2024 Greece Golden Visa regulations are:
- Property purchase – the minimum investment is €400,000 for most areas, but it rises to €800,000 for properties in Athens, Thessaloniki, Mykonos, and Santorini. The differences are to control purchases in higher populated areas and promote other regions of Greece.
You are not permitted to rent out your property short-term if you have purchased it through the Golden Visa scheme.
- Government bonds or shares – a minimum investment of €400,000 is required.
- Investment in Greek companies or funds -the minimum investment is €500,000.
The implications of residency on taxation
Your tax obligations depend on your residency status. As a Greek tax resident, your worldwide income is taxable, including income from your Greek property. Non-residents are generally taxed only on Greek-sourced income, such as rental income. However, both residents and non-residents must pay the property tax (ENFIA).
Since Brexit, if you spend less than 183 days per year in Greece, you’re considered a non-tax resident. This means you’re not liable for taxes on your worldwide income. However, if you choose to spend more than 183 days in Greece, you become a tax resident and must pay taxes.
This includes income from property, pensions and other foreign sources.
The United Kingdom has a reciprocal agreement with Greece so that you only pay tax in one country.
iad Overseas finds your dream home in Greece
While Greece offers several tax advantages, it’s essential to check the most up-to-date information as tax laws can change.
Greece offers certain tax benefits for property owners. With the low price of property compared to many locations in Europe it’s worth considering buying a house in Greece.
If you’re thinking of retiring to Greece using the Golden Visa scheme and have additional income, for example, a second property you rent out, you could make some generous savings on your income thanks to the 7% tax rate.
Would you like advice and guidance on buying a property in Greece? Our iad Overseas property consultants can assist you in navigating throughout the Greek property market and will be happy to help you choose your dream home or a profitable investment.
- https://getgoldenvisa.com/greece-property-taxes#:~:text=When%20you%20purchase%20a%20property,value%2Dadded%20tax)%20rates.
- https://www.globalpropertyguide.com/europe/greece/price-history
- https://getgoldenvisa.com/greece-property-taxes#:~:text=When%20you%20purchase%20a%20property,value%2Dadded%20tax)%20rates.
- https://www.gov.gr/en/sdg/residence/purchasing-and-selling-of-immovable-property/taxation-for-possession-of-real-estate-property/uniform-real-estate-property-tax-enfia
- https://www.globalpropertyguide.com/europe/greece/taxes-and-costs#:~:text=Rental%20income%20earned%20in%20Greece,)%20and%2010%25%20for%20depreciation.
- https://www.judicaregroup.com/site/country/lawyers-in-greece/buying-property-in-greece/inheritance-tax-greek-property/
- https://www.globalpropertyguide.com/europe/greece/taxes-and-costs#:~:text=Rental%20income%20earned%20in%20Greece,)%20and%2010%25%20for%20depreciation.
- https://globalresidenceindex.com/greece-golden-visa/
- https://www.gov.gr/en/sdg/work-and-retirement/taxation/personal-income-taxes/information-on-tax-residence
- https://minfin.gov.gr/en/tax-policy/tax-guide/value-added-tax-vat/
- https://www.arencores.com/help-resources/greece-property-taxes/#:~:text=The%20property%20purchase%20tax%20amount,of%20the%20property%20value%20%E2%80%94%20applies.
