When you’re selling a holiday home in Greece from abroad, VAT obligations rarely apply to your transaction. Most foreign homeowners selling residential property are exempt from charging VAT, as private property sales fall outside VAT requirements. The confusion often arises because Greece uses different tax systems for property transactions: VAT applies primarily to new construction sales by businesses, whilst established residential properties are subject to property transfer tax paid by the buyer instead. In most cases, private individuals do not need to charge VAT, unless the tax authorities classify the activity as commercial.
Do I need to charge VAT when selling my property in Greece?
As a private individual selling your Greek holiday home, you do not need to charge VAT on the sale. Greek tax law exempts residential property sales between private parties from VAT obligations, treating these transactions as private transfers rather than commercial supplies. This exemption applies regardless of whether you’re a Greek resident or a foreign homeowner selling from Germany, the Netherlands, or elsewhere in the EU.
VAT on property sales in Greece primarily affects business entities and developers selling newly constructed properties. If you’re selling as a private person—even if you’ve rented the property during your ownership—the transaction remains a private sale exempt from VAT registration and charging requirements. The buyer will instead pay the standard 3.09% property transfer tax directly to the Greek tax authorities, calculated on the higher of the purchase price or the government’s objective value assessment.
The distinction matters because it determines your administrative obligations. Private sellers avoid the complexity of VAT registration, quarterly VAT returns, and the accounting systems required for VAT-liable transactions. Your tax obligations centre instead on ensuring proper documentation exists for the transfer and addressing any applicable income tax considerations on the sale proceeds.
What’s the difference between VAT and property transfer tax in Greece?
Property transfer tax and VAT represent two mutually exclusive tax systems in Greek real estate transactions. The property transfer tax applies to most residential property sales at a flat rate of 3.09%, calculated on the property’s declared value or objective value, whichever is higher. The buyer pays this tax before the notarial deed signing, and it applies to established properties regardless of age.
VAT, by contrast, applies specifically to new construction properties sold by developers or business entities, typically within a specific timeframe after completion. When VAT applies, it replaces the transfer tax rather than adding to it. Properties built after 2006 that are sold for the first time by the constructing entity may fall under the VAT system rather than transfer tax, though this rarely affects foreign homeowners selling holiday properties they’ve owned for years.
For sellers, this distinction clarifies your role in the transaction. As a private seller of an established property, you’re not responsible for collecting or remitting either tax. The buyer handles the 3.09% transfer tax payment directly with the tax office, whilst you focus on the legal transfer process and your own tax obligations related to the sale proceeds. This separation of responsibilities simplifies cross-border transactions for foreign homeowners who might otherwise worry about navigating Greek VAT compliance from abroad.
When does a property sale in Greece require VAT registration?
VAT registration becomes necessary only in specific commercial scenarios that rarely apply to foreign holiday homeowners. If you’re selling property through a registered business entity—such as a Greek company that holds real estate as business assets—the sale may trigger VAT obligations depending on the property type and intended use. Companies selling commercial properties or newly constructed buildings typically must charge VAT and maintain proper registration.
Individual sellers face VAT registration requirements only when their property transactions cross into business activity territory. Greek tax authorities classify selling three or more properties within any rolling two-year period as business activity, which fundamentally changes your tax status. This classification triggers progressive income tax rates ranging from 9% to 44% on the proceeds, though it still doesn’t automatically require VAT registration unless you’re conducting systematic property development or trading activities.
The practical reality for most foreign homeowners is straightforward: selling your single holiday home, or even a second property within a reasonable timeframe, keeps you firmly in private seller territory. You avoid VAT registration, quarterly VAT returns, and the accounting infrastructure required for VAT compliance. Even if you’ve rented the property through short-term letting platforms during your ownership, selling it as a private individual maintains your exemption from VAT obligations, provided you’re not operating as a registered business entity.
What tax documents do I need when selling my Greek property abroad?
Essential tax documentation for selling Greek property from abroad centres on proving your tax compliance history and establishing the legal foundation for the transfer. You’ll need your AFM (Greek tax identification number), which serves as your permanent tax identity in Greece and appears on all property-related tax documents. The tax clearance certificate demonstrates you have no outstanding tax debts related to the property, confirming all ENFIA annual property taxes have been paid through the most recent billing cycle.
Documentation proving property tax payments becomes particularly important for properties you’ve owned for several years. Buyers and their legal representatives will verify that ENFIA obligations are current, as unpaid property taxes can create liens affecting the title transfer. If you’ve generated rental income from the property, documentation of those tax declarations and payments may be requested, though rental income taxation remains separate from the property sale itself.
For foreign sellers managing the process remotely, comprehensive legal services coordinate this document gathering whilst you remain abroad. Professional property law firms obtain tax clearance certificates, verify ENFIA payment status, and ensure all required documentation reaches the notary before the scheduled transfer date. Our guide to selling your home outlines the complete documentation process, including how power of attorney arrangements allow your legal representative to handle tax-related formalities without requiring your physical presence in Greece for every administrative step.
How does capital gains tax differ from VAT on Greek property sales?
Capital gains tax and VAT represent entirely different tax obligations that sellers often conflate when planning international property sales. Capital gains tax applies to the profit you make from selling property—the difference between your original purchase price (plus qualifying improvements) and the sale proceeds. However, Greece has suspended capital gains tax for individual property sellers through December 31, 2026, a suspension that has been renewed annually since 2013, effectively eliminating this tax burden for most foreign homeowners.
Even when the suspension eventually expires, capital gains tax affects only properties held for less than five years, with a 15% rate on the profit. Properties held longer than five years qualify for automatic exemption regardless of suspension status. This contrasts sharply with VAT, which applies to the full transaction value of qualifying sales, not just the profit, and involves ongoing compliance obligations rather than a single tax calculation at sale.
The practical implication for foreign homeowners is reassuring: you’re unlikely to face either tax on your holiday home sale. The capital gains tax suspension means no tax on your profit, whilst the VAT exemption for private residential sales means no transaction tax obligation on your part. The buyer pays the 3.09% transfer tax, and your primary tax consideration becomes ensuring you’ve met all property tax obligations during your ownership period. This favourable tax treatment makes Greek property sales relatively straightforward from a seller’s tax perspective, particularly compared to jurisdictions that impose multiple overlapping taxes on property transactions.
Can I handle Greek property tax obligations without travelling to Greece?
Managing Greek property tax obligations remotely is entirely feasible through proper legal representation and power of attorney arrangements. A notarised power of attorney allows your designated representative—typically a property lawyer or legal professional—to act on your behalf for all tax-related matters, including obtaining tax clearance certificates, verifying ENFIA payment status, and coordinating with tax authorities. This arrangement eliminates the need for multiple trips to Greece whilst ensuring full compliance with tax requirements. Most procedures can be handled remotely via power of attorney, although some steps may require a representative’s physical presence at Greek authorities.
The myAADE online tax platform provides digital access to most property tax functions, allowing you or your representative to view ENFIA bills, make payments, and download tax certificates remotely. Your AFM credentials grant access to your complete tax profile, including property tax history and outstanding obligations. For foreign homeowners who established their AFM during the original property purchase, maintaining this digital access throughout your ownership period simplifies the eventual sale process considerably.
Integrated legal services coordinate all tax compliance aspects whilst you remain abroad, managing the timeline to ensure certificates and clearances are obtained before the notarial appointment. We handle tax authority communications, resolve any outstanding obligations, and verify that all documentation meets notary requirements for the property transfer. This comprehensive approach addresses the frustration many foreign homeowners experience with Greek bureaucracy, providing a single point of contact for tax compliance, legal documentation, and the complete sales process. The result is a legally secure transaction that progresses efficiently without requiring your physical presence for routine administrative tasks.
Understanding VAT obligations and property tax requirements removes significant uncertainty from selling Greek property abroad. Most foreign homeowners benefit from straightforward tax treatment: no VAT obligations, suspended capital gains tax, and manageable documentation requirements that professional representation can coordinate remotely. If you’re considering selling your Greek property and want clarity on your specific tax obligations and a transparent process from initial valuation through final transfer, contact our multilingual team for guidance tailored to your situation.
Disclaimer: This content is for informational purposes only and does NOT constitute legal or tax advice. For any issues relating to specific cases, it is highly recommended to consult a lawyer, an accountant or a notary depending on your needs.
