08.11.2024
When considering a property purchase in Greece, one of the main decisions is whether to buy as a private individual or through a legal entity (company). This choice has significant implications for taxes, costs, and long-term planning. Below are some of the advantages and disadvantages of purchasing real estate through a legal entity.
Tax on Rental Income: Income generated from property is taxed at a flat rate of 22% as business profit. This can be more favourable than the progressive tax rates applied to individual rental income, especially when the property generates significant rental revenues.
Deduction of Business Expenses: A legal entity can deduct most expenses related to the operation of the property, including maintenance, cleaning, and loan interest, helping to reduce the taxable income.
Depreciation of Real Estate Assets: Property depreciation is allowed for legal entities, with a depreciation rate of 4% on buildings, constructions, and installations. Depreciation is applied only to the value of the buildings, not the land, which reduces taxable profits over time.
Flexibility in Inheritance Tax Planning: Using a legal entity for property ownership provides flexibility in tax planning, particularly for inheritance purposes, allowing you to optimize your tax position when transferring assets to heirs.
Dividend Tax: In addition to the 22% tax on rental income, dividend distributions to shareholders are taxed at a 5% rate in Greece. If the shareholders do not have their tax residency in Greece, additional dividend taxes might be levied in their home country. However, depending on other sources of income, you may have flexibility in timing the dividend distribution to manage tax liabilities.
Short-Term Rental Tax: Starting January 1st, 2024, a 13% Value Added Tax (VAT) is imposed on short-term rentals, affecting all legal entities. Private homeowners don't pay VAT on rental income unless they own three or more rental properties.
Establishment and Operating Costs: Setting up and maintaining a company involves ongoing costs, including legal and accounting fees. These annual costs can easily range from €3,000 to €5,000, regardless of the income generated by the property.
Capital Gains Tax: Any capital gains realized from the sale of the property are taxed at a fixed rate of 22% as business income. In contrast, private individuals are exempt from capital gains tax when selling a property in Greece.
Property Tax (ENFIA): Legal entities are subject to both principal and supplementary property tax (ENFIA). The supplementary tax is calculated at a rate of 5.5% on the total value of the real estate or 1% for properties used for business purposes.
Income from Self-Occupation: If the company itself uses the property, the income is presumed to be 3% of the property's objective value, which is considered business income. This imputed rent is deductible, making the effect on taxes neutral as long as it doesn’t exceed 3% of the property’s value.
Special Real Estate Tax for Non-Cooperative Countries: Legal entities from non-cooperative countries are subject to an annual special real estate tax of 15% on the property’s value unless they meet specific disclosure requirements for ultimate beneficial owners (UBOs). Exemptions are available for companies whose UBOs have a Greek tax identification number and meet transparency rules.
Greek State Bureaucracy: Starting and owning a business in Greece requires regular updates with the Chamber of Commerce, along with other ongoing responsibilities.
Whether you choose to purchase real estate as an individual or through a legal entity depends on your financial goals, the size of the investment, and how you plan to use the property. Legal entities provide more flexibility with expenses and depreciation, but they come with higher setup and operational costs. Individual buyers face higher income tax rates but benefit from fewer ongoing costs and no special real estate taxes. For larger investments, typically above €500,000 - € 600,000, buying through a company may be more beneficial.
Investing in Greek real estate through a legal entity offers unique advantages, such as tax deductions and depreciation opportunities. However, it's essential to weigh these benefits against the associated costs and administrative responsibilities to determine the most suitable approach for your investment goals.
When renting out property in Greece, owning it as an individual versus through a legal entity involves some notable trade-offs. Individuals are taxed on rental income at progressive rates of 15–45%, while a legal entity benefits from a flat 22% rate. For short-term rentals, individuals are only affected after three or more rentals, whereas a legal entity must charge 13% VAT on all short-term rentals from the outset.
On the cost side, individuals have minimal operating expenses, but a legal entity typically incurs €3,000–€5,000 in annual running costs, though it compensates with meaningful tax advantages: full deduction of business-related expenses, 4% annual depreciation on buildings, and no restrictions on offsetting costs. Distributed profits from a legal entity are subject to a 5% dividend tax, which does not apply to individuals.
Property tax (ENFIA) is also slightly heavier for legal entities, which pay both the principal tax and a 5.5% supplementary charge, compared to just the principal tax for individuals.
Finally, legal entities holding property in non-cooperative countries face an additional 15% special real estate tax, and unlike individuals, they must maintain regular filings with the Chamber of Commerce.
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Disclaimer: The information provided in this article is for general informational purposes only and does NOT constitute legal or financial advice. The current suspension of the 15% capital gains tax on real estate sales for individuals in Greece is valid until December 31, 2026. However, it's crucial to note that Greek tax authorities may still classify a sale as a "business activity" based on specific criteria (e.g., intent for profit, quick resale), which would subject the profit to standard income tax rates and potentially VAT. For instance, if the property was built or bought specifically for sale rather than for personal use (e.g., never occupied by the owner), the tax office may view the profit as business income. If a sale is reclassified as business activity, the "profit" (the difference between construction cost and sale price) is taxed as business income rather than capital gains. We strongly recommend consulting with a qualified Greek tax professional or lawyer to discuss your specific situation before making any real estate decisions.
18.05.2026
You've dreamed for years about your home in Greece: where it will be, the taverna meals you will have, and the summer sun. Now comes one of the logistics of buying a home in Greece: what kind of ownership you want.
17.05.2026
If you’re searching for your dream home in Greece, you’ve probably already run into the question: should I buy an existing home in Greece, or a new, off-plan home? Many buyers are specifically looking for off-plan houses in Greece in the best locations in Greece to maximize their investment and lifestyle benefits, with off-plan apartments and villas also being popular choices among buyers. Off-plan property investment refers to purchasing real estate before construction is completed, allowing buyers to secure a unit at lower pre-construction prices and benefit from potential capital appreciation. Many investors choose to invest in off-plan properties in Greece for both lifestyle and financial benefits, such as flexible payment plans and the potential for rental income.
First things first, let’s define off-plan homes and discover the unique opportunities they offer in Greece. The Greek property market continues to attract international investors seeking geographic diversification, with a growing number of off-plan developments available. Recent data from market reports shows a steady increase in off-plan property purchases among overseas buyers, with data analysis highlighting this upward trend. Off-plan developments in Greece typically offer modern specifications and warranties, making them especially attractive to international investors looking for both quality and security in their property investments.
15.05.2026
Buying a house in Greece comes with many things people already expect: sunshine, sea views, olive trees, village squares, and terraces that seem specifically designed for “just one more coffee.” But the buying process itself may also include a few details that feel different if you are used to purchasing property elsewhere. The Greek real estate process has its own rhythm, local habits, and practical steps. Some are legal. Some are technical. Some are simply part of life in Greece.
Here are 10 things you may find a bit strange when buying a house in Greece.
13.05.2026
“I need to be a Greek citizen to buy a home in Greece, right?” “Don't I need a Greek bank account to buy a home in Greece?” “I signed a Private Purchase Agreement... does that mean I own the house now?” In this article, we present the most common misconceptions we hear from clients. Keep in mind, this is perfectly normal if you're buying a home in Greece for the first time!
12.05.2026
I want to buy a home in Greece, but I don’t know anything about the process. Who will I work with when buying a home in Greece? If I don’t speak Greek, will someone help me with the documents? Do I need a lawyer, a real estate agent, or an engineer? Which of these contacts do I need to have in Greece before I start the process of buying a home?
When buying property in Greece, you will typically work with a real estate agent, a buyer’s lawyer, who is a key participant in drawing up and signing the purchase deed in collaboration with the notary, and a notary. The notary office is the expert entity for notarial acts and legal services related to property transactions, including property conveyancing, document formalization, and legal consultancy, as well as notarial acts and legal services for documents intended for use abroad, addressing cross-border requirements such as translations and legalization. The office serves as the professional space where legal and notarial services are conducted, such as signing, verification, and consultations. Understanding all the costs involved, such as notary fees, transfer taxes, and legal fees, is crucial to avoid surprises and ensure a smooth transaction. These professionals are essential for both individuals and businesses looking to invest in Greek real estate.
Buyers, whether private individuals or commercial entities, often require guidance to navigate the Greek notary system, understand the legal framework, and ensure all necessary documents and legal requirements are met. Greece is a popular destination for international clients, including those seeking a golden visa through real estate investment. This is especially important for international clients who may not be familiar with the local language or the digital systems now supporting notarial acts in Greece. The contract for property transactions is always drafted in Greek, so a translator is required for non-Greek speakers. The process and role of notaries can differ from those in other countries, so expert guidance is highly recommended. Notaries in Greece also provide services related to wills, which are important for estate planning and succession.
11.05.2026
In recent years, buying a second home in Greece has become especially popular, driven by the steady growth of the real estate market and increased interest from investors. This growth is supported by Greece's economic recovery and government incentives, making it an attractive investment opportunity. The rise of home rental websites like Airbnb and VRBO has further fueled demand. Greece offers something for every lifestyle, with a diverse range of property types including modern apartments in vibrant city centers, luxury villas on the islands, and family-friendly homes in the mainland regions. As a popular tourist destination, Greece attracts both buyers and investors seeking lifestyle benefits, strong rental income potential, and long-term appreciation. The country's warm hospitality and high quality of life further enhance the experience of owning a second home here.
16.04.2026
In this comprehensive guide to buying a home in Greece, we will cover the entire process of buying a home in Greece, including where to buy a home in Greece, what types of homes you can buy in Greece, the documents needed, the legal process of buying a Greek home, and also frequently asked questions.
- Trustworthy: Elxis has over 30 years of experience buying, selling, and performing all legal procedures for the purchase and sale of properties in Greece. The information in this guide comes directly from our team of lawyers and real estate consultants, so you don’t need to think twice about the credibility of the information.
- Up to Date: Most similar guides you will find on the internet have old information about tax rates, documentation, and legal processes. This buyer’s guide is continually updated as the rules and regulations in Greece change, so you don’t have to wonder if anything is out of date by the time you start your home search.
- Optimized for English Speakers: Many similar guides are translated from Greek to English, and as a result, some of the meaning is lost in translation. This guide is written 100% by native English speakers and proofed by native Dutch and German speakers, so the information is clear and understandable, no matter where you’re reading from.
29.12.2025
You have bought your home in Greece and are wondering how to add utilities such as electricity, water and internet to your property? In this article we explain exactly how to add utilities to your home in Greece.
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