22.10.2026
Best Islands to Retire in Greece
Based on recent data of ours, almost one in three buyers (30.8%), mainly retirees, from abroad are looking for a property in Greece for a permanent residence.
Market Insights
A series of property tax measures make buying and owning real estate in Greece more attractive for foreign buyers. Several were introduced in late 2024 and have since been extended. Here is where each one stands now.
1. VAT Suspension for New Buildings Until the End of 2026
You may have heard of a "VAT exemption" in Greece. Greek developers can apply for a VAT suspension on their construction projects. Where it applies, the buyer does not pay the 24% VAT on a new home in that project. Instead, the buyer pays the 3.09%* transfer tax, which is much lower. This makes buying a newly built property more affordable. The suspension was due to expire at the end of 2025. It has now been extended until the end of 2026 under Law 5246/2025. One point to keep in mind if you are building rather than buying. If you buy a plot intending to build a home, you pay the 3.09%* transfer tax on the plot. When construction begins, the contractor issues invoices with VAT for each stage of the work. The VAT suspension does not apply to those construction invoices.
*Important update: The Greek Prime Minister, Kyriakos Mitsotakis, has announced that the property transfer tax for purchases by non-EU citizens is set to rise to 15%, with the change expected to apply from 1 January 2027. The implementing legislation has not yet been published, so the final scope, including how it may treat plots of land and commercial property, is not yet confirmed.
2. ENFIA Exemption for Historic Buildings
Listed historic buildings may be exempt from ENFIA, subject to a value limit and other conditions. The qualifying threshold can change, so confirm the current limit with a tax professional. Temporary exemptions may also apply to properties in certain regions.
What is ENFIA?
ENFIA is the main ongoing tax you pay on a home in Greece. It is based on the property's tax zone, so it is higher in sought-after areas, such as Mykonos, Santorini, and central Athens, and lower in the countryside. For rural properties, it often works out at around 3 to 4 euros per built square metre per year. A 100 square metre home might therefore pay roughly 300 to 400 euros a year, depending on location. For unbuilt plots, ENFIA is very low.
A 20% ENFIA Reduction for Insured Homes
If your home has a taxable value of up to €500,000 and is insured against fire, earthquake, and flood, you may qualify for a 20% reduction on ENFIA.
3. Capital Gains Tax Suspension Until the End of 2026
This one matters if you are planning to sell. Capital gains tax is calculated on the difference between a property's purchase price and its sale price. In Greece, it was introduced in 2013 but suspended soon after, and that suspension has been extended ever since. In practice, this means that as an individual seller, you will not be taxed in Greece on the profit from selling your property, provided the transfer takes place by the end of 2026. If you are resident in another country, you may still have capital gains obligations at home. Greece has treaties with many countries designed to prevent double taxation.
4. Income Tax Exemption for Long-Term Rentals
If you are planning to let your home, this measure rewards switching to long-term renting. It offers an income tax exemption on rental income from properties that were previously vacant, or previously used for short-term rentals, and that are now let on a long-term basis. The main conditions are:
The lease must run for at least three years.
The lease must be signed between 8 September 2024 and 31 December 2026.
The property must have been vacant, or used only for short-term rental, in the qualifying period before the lease begins.
The exemption stops applying if, within the three-year period, the property becomes vacant again or is used for short-term rental. It can continue if the property is re-let on another long-term lease. Other eligibility conditions apply, so confirm your situation with a tax professional.
In Summary
Together, these measures lower the cost of buying, owning, and letting property in Greece. The VAT suspension keeps new-build purchase costs down, the ENFIA reliefs ease the annual tax on certain homes, the capital gains suspension means individual sellers are not taxed on their profit through the end of 2026, and the rental exemption rewards long-term letting. We have been guiding international buyers to find their ideal home in Greece since 1991, and we are happy to help you understand how these rules apply to your plans.
Disclaimer: The information provided in this article is for general informational purposes only and does NOT constitute legal or financial advice. The suspension of the 15% capital gains tax on real estate sales for individuals in Greece is currently valid until 31 December 2026. Greek tax authorities may still classify a sale as a business activity based on specific criteria, such as intent for profit or quick resale, which would subject the profit to standard income tax rates and potentially VAT. For example, if a property was built or bought specifically for sale rather than for personal use, and never occupied by the owner, the tax office may treat the profit as business income. We strongly recommend consulting a qualified Greek tax professional or lawyer about your specific situation before making any real estate decisions.
