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Do Inheritance Tax Rules Affect Property Sale Proceeds?

Purchase Tips

04.06.2026

Greece taxes

In Greece, the inheritance tax on an inherited property usually has to be paid in full before the property can be sold. How much is owed depends on how closely the heir was related to the deceased, and on the value of the share inherited. Close family members fall into the most favourable category and benefit from a significant tax-free allowance. The tax is calculated on the official objective value set by the tax authorities, not the market price. Because payment usually comes before the sale completes, the timing is worth planning for in advance. 


Inheriting a property in Greece often brings a practical question with it. What happens on the tax side once you decide to sell? The two are linked in one important way. Before an inherited property can change hands, the inheritance tax on it commonly has to be settled first. That affects your timing, and it affects the proceeds you eventually receive. The amount depends on your relationship to the person you inherited from, and on the value of your share. Close family members are treated far more favourably than distant relatives. Knowing how this works makes selling an inherited home in Greece much easier to plan.

What is Inheritance Tax and How Does It Apply to Greek Property?

Inheritance tax in Greece is a tax on property and assets passed from a deceased person to their beneficiaries. It applies to inherited Greek real estate regardless of where the heir lives or which passport they hold. A foreign heir generally faces the same basic rules as a Greek resident. The tax is calculated on the property's objective value. This is the official value set by the tax office, rather than the market price. The objective value is often lower than the market value, which can work in the heir's favour. 


It helps to keep two different taxes apart. Inheritance tax is paid by the heir who receives the property. Property transfer tax is something else. It is set at 3.09% of the property's taxable value and is paid by the buyer when a property is purchased. The two are easily confused, though they apply to different people at different moments. Foreign heirs have an extra point to check. Some countries have agreements with Greece to avoid the same inheritance being taxed twice. Whether such an agreement applies depends on the country involved. An accountant can confirm this and advise on any reporting duties in the heir's home country.

How Much Inheritance Tax Do You Pay on Greek Property?

How much you pay depends mainly on how closely you were related to the person you inherited from. Greek law commonly places heirs into three categories. The closest relatives fall into the first category and receive the most favourable treatment. More distant relatives and unrelated beneficiaries fall into the other categories and typically pay more. 


For close family, such as a spouse, children, grandchildren and parents, a significant part of the inherited value is tax-free. For this group, the first €150,000 of value is typically exempt. Above that allowance, the rate is progressive. It rises with the value of the share inherited, and it stays lower for close relatives than for distant ones. The calculation uses the objective value rather than the market value, as described above. It also looks at the total value each heir receives, not just a single property. A larger inherited share can therefore move an heir into a higher band.

Do You Pay Inheritance Tax Before or After Selling Inherited Property?

You do not have to pay inheritance tax the moment you receive an inheritance. There is no need to accept and settle it immediately just because you have become an heir. Selling is different. Before an inherited property can be sold, the heir needs to show proof that the inheritance tax on it has been paid in full. In practice this means the tax has tobe settled before the sale can complete. If selling is your plan, it is the first thing to arrange. This creates a cash-flow point worth thinking about. The tax has to be paid before the sale proceeds reach you. The funds may therefore need to come from elsewhere for a short period. Planning for this in advance helps avoid a delay later. 


There is also a point worth knowing about the sale itself. Capital gains tax on property sales by individuals is currently suspended in Greece, up to the end of 2026. For now, an individual seller is not taxed on the profit from a sale. This applies whether or not the property was inherited. On timing, an inheritance tax declaration commonly has to be filed within a set deadline after the inheritance. The exact deadline depends on the circumstances of the case. An accountant or lawyer can confirm which deadline applies to you.

What Happens if Inheritance Tax Isn't Paid Before Selling Property?

If the inheritance tax has not been paid, the sale cannot complete. Under Greek rules, an inherited property generally cannot be transferred until the inheritance tax on it has been settled. Without that, a sale is not possible. Leaving the tax unpaid can also become more expensive over time. Late payment can lead to penalties and interest, which add to the total owed. The longer it stays open, the larger the amount can grow. 


There is a knock-on effect for any future sale. Unpaid inheritance tax can cloud the title of the property. A buyer's lawyer will usually spot this during due diligence, and it can hold up or block the sale until it is resolved. These situations can be sorted out. Payment arrangements with the tax authorities are sometimes possible, and the right professional support makes the process much smoother. Our in-house legal team can guide you through the inheritance process and the sale together, so the two fit neatly. Understanding the inheritance tax position before putting an inherited property on the market is the simplest way to avoid these problems.



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. 

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