03.09.2026
Buying an Off-Plan House in Greece from Abroad Explained
“How can I buy a house in Greece that is not built yet from abroad?”
That’s a very common question we receive from clients interested in buying an off-plan house.
Purchase Tips
One of the first choices when buying property in Greece is whether to buy in your own name or through a company. It is worth settling early, because it shapes your tax, your running costs, and your long-term planning. There is no single right answer. For a single holiday home, buying in your own name is usually the simpler and cheaper route. For a larger investment, a company structure can earn its keep through deductions and depreciation. Which way works best comes down to the size of your investment and how you plan to use the property. Below is an honest look at what a company structure offers and what it costs, under the rules in force for 2026.
Buying Through a Company: The Advantages
A Flat Rate on Rental Income
Income from property held by a company is taxed as business profit at a flat 22%. For a property earning a high rent, that can work out lower than the progressive rates an individual pays. Individual rates start at 15% on the first €12,000. A 25% band applies between €12,000 and €24,000. Income between €24,000 and €36,000 is taxed at 35%. Anything above €36,000 is taxed at 45%.
Deduction of Running Costs
A company can deduct most costs of running the property, such as maintenance, cleaning, and loan interest. This lowers its taxable income, which an individual owner cannot do to the same extent.
Depreciation of the Building
A company can depreciate the building for tax at 4% a year, which reduces taxable profit over time. Depreciation applies to the value of the building only, not the land.
Flexibility in Estate Planning
Holding property through a company can give you more room to plan how assets pass to your heirs.
Buying Through a Company: The Drawbacks
Dividend Tax
On top of the 22% on profit, dividends paid out to shareholders are taxed at 5% in Greece. Shareholders who are tax resident elsewhere may also be taxed at home, though there can be room to time distributions to manage this.
VAT on Short-Term Rentals
A company's letting is business activity by nature, so its short-term rental income falls within the 13% VAT regime. An individual stays outside VAT while letting one or two properties without hotel-style services. At three or more properties, or once hotel-style services such as daily cleaning or breakfast are provided, the individual is brought into the 13% VAT regime as well. Reduced VAT rates apply in some island locations.
Set-up and Running Costs
A company carries legal and accounting costs whether or not the property earns anything. These typically run from €3,000 to €5,000 a year.
Capital Gains Tax
When a company sells, the gain is taxed as business income at 22%. For individuals, capital gains tax on property sales is suspended through the end of 2026, so an individual seller is not taxed in Greece on the profit as things stand.
Property Tax (ENFIA)
A company pays the main ENFIA plus a supplementary tax. The supplementary tax is 0.55% of the total value of the company's property, reduced to 0.1% for property the company uses for its own business. An individual pays the main ENFIA, with an extra charge only once the total value of their property passes €500,000.
Tax on Self-Use
If the company occupies the property itself, the rules treat it as earning a notional rent, counted as business income. Because that same amount is also deductible, the effect on the company's tax tends to be broadly neutral.
Special Real Estate Tax
A company that does not disclose its ultimate beneficial owners pays an annual special real estate tax of 15% of the property's value. Companies that disclose their owners to the Greek tax authorities, along with listed and regulated investment vehicles, are exempt.
Administrative Obligations
Owning property through a company means regular filings with the business registry (GEMI), along with the usual duties that come with running a company.
Individual or Company: A Side-by-Side
Rental income tax: Individual pays progressive rates, 15% to 45%. A company pays a flat 22%.
Short-term rental VAT: An individual stays outside VAT for one or two properties without services, and enters the 13% rate at three or more, or with hotel-style services. A company's letting is within the 13% VAT regime.
Cost deductions: An individual can deduct little. A company can deduct most running costs, plus 4% annual building depreciation.
Capital gains on sale: For an individual, the tax is suspended through the end of 2026. A company's gain is taxed at 22% as business income.
Distributed profit: An individual faces none. A company pays 5% dividend tax on distributions.
Annual running costs: Minimal for an individual beyond the tax itself. Typically €3,000 to €5,000 for a company.
Property tax (ENFIA): An individual pays the main tax, with an extra charge only above €500,000. A company pays the main tax plus a 0.55% supplementary tax, reduced to 0.1% for property used for its own business.
Administration: None for an individual. A company has GEMI filings and the usual company duties.
How to Weigh it Up
The two routes involve real trade-offs. On rental income, an individual is taxed progressively while a company pays a flat 22%. On costs, an individual has very little to pay beyond the tax itself, while a company carries €3,000 to €5,000 a year in running costs. The company offsets this with deductible expenses, 4% annual depreciation on the building, and more freedom to set costs against income. Distributed company profits also carry the 5% dividend tax, which individuals do not face. As a rough guide, a company tends to make sense for larger investments, where the deductions and depreciation can outweigh the extra costs and admin. For a single holiday home, it is usually simpler and cheaper to buy in your own name. The right answer comes down to your own figures and plans, so tailored advice is well worth getting before you decide.
Frequently Asked Questions
Is It Better to Buy Property in Greece as an Individual or Through a Company?
A single holiday home is usually simpler and cheaper in your own name. A company tends to suit larger investments, where deductions and depreciation can outweigh the extra costs and administration.
How is Rental Income Taxed For a Company in Greece?
As business profit at a flat 22%, with most running costs and 4% annual building depreciation deductible.
Do Individuals Pay VAT on Short-Term Rentals in Greece?
Not while letting one or two properties without hotel-style services. At three or more properties, or once such services are provided, the 13% VAT regime applies.
What are the Annual Costs of Holding Greek Property in a Company?
Legal and accounting costs typically run from €3,000 to €5,000 a year, plus ENFIA. A company pays the main ENFIA along with a 0.55% supplementary tax, reduced to 0.1% for property it uses for its own business.
Does a Company Pay Capital Gains Tax When Selling Property in Greece?
Yes. A company's gain is taxed as business income at 22%. For individuals, capital gains tax on property sales is suspended through the end of 2026.
What is the Special Real Estate Tax in Greece?
An annual tax of 15% of the property's value on companies that do not disclose their ultimate beneficial owners. Companies that disclose their owners to the Greek tax authorities are exempt.
Disclaimer: This article is for general information only and does not constitute legal or financial advice. The suspension of capital gains tax on property sales by individuals is in force through the end of 2026 and is subject to change. The tax authorities may also treat a sale as a business activity in certain cases, for example, where a property was built or bought specifically to sell and was never used by the owner, in which case the profit can be taxed as business income rather than as a capital gain. Tax rates, thresholds, and rules can change and depend on your circumstances. Please consult a qualified Greek tax professional or lawyer about your own situation before making any decisions.
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