Taxes on Real Estate in Greece (Updated for 2026)

On most real estate sites, all prices exclude taxes. In purchases of a home in Greece, one of two taxes will apply: the transfer tax or the value-added tax (VAT). 


Transfer Tax


The transfer tax, which you pay when purchasing a property in Greece, is called FMA. It is 3.09% of the purchase price, and it’s the buyer's responsibility to pay. Transfer tax is paid when purchasing plots or existing houses. This tax is based on the purchase price or the so-called ‘objective tax value’ of the property, whichever is higher. The objective tax value is calculated by the tax office based on objective criteria, independent of the sale price. In the Greek countryside, this value is very rarely above the market price. 


Value-Added Tax (VAT)


Normally, building companies or professional builders need to charge 24% VAT when transferring newly built homes to their first owners. You may have heard of a “VAT exemption” in Greece. Greek developers have the option to apply for a VAT exemption for their construction projects until the end of 2026. In that case, the buyers won’t have to pay 24% VAT for a house in such a project; instead, the buyer will pay 3.09% transfer tax. This is an initiative of the Greek government to make it easier to buy newly-built properties. If you buy a plot with the intention of building a home, you will need to pay transfer tax (3.09%) on the purchase of the plot. When construction starts, the contractor will issue invoices (with VAT) for all construction stages. You can not get a VAT exemption for these invoices.

ENFIA


ENFIA is the main ongoing tax you will pay on your home in Greece. It is calculated based on your tax zone and is therefore higher in more desirable areas (think Mykonos, Santorini, and the centre of Athens), and is lower in the countryside. Usually, for properties in the countryside, it is 3-4 euros yearly per built square meter. For example, a home of 100 square meters would have ENFIA taxes of 300-400 euros per year (depending on the exact location). In the case of unbuilt plots, ENFIA costs are very low.


Rental Tax


Note that if you don’t plan on renting out your home in Greece, this section won’t be relevant. If you plan on renting out your property, you will need to pay tax on rental income in Greece. For individuals, progressive tax rates apply to rental income and are calculated per owner on the gross rental income of the property.


- Up to a rental income of €12,000: 15 percent
- Between €12,001 & €25,000: 25 percent
- Between €24,001 & €35,000: 35 percent
- Greater than €35,001: 45 percent


Benefits of Co-Ownership


In general, it benefits couples to buy with two names rather than one, because the above tax rates apply per owner.In cases of high-income rental properties, it is almost always best to purchase property as a company because you can deduct expenses, costs, and the depreciation of the building. Company tax in Greece is 22% and will decline in the coming years. To see how you can purchase as a company, contact us. Our legal team would be glad to help you explore this option.

TAP (Telos Akinitis Periousias)


TAP is a tax from the municipality and is the smallest of the taxes listed. TAP is usually only a few euros and is charged to your electricity bill.


Doing Your Taxes in Greece


It’s always helpful to work with an accountant, since they understand the local systems and will save you a lot of time doing taxes in Greece. You can expect to pay them about 150-200 euros per year for filing taxes.

There are a number of significant changes coming to property taxation that make investments in Greek real estate more attractive for foreigners.


Exemption From ENFIA for Historic Buildings Worth up to 400,000 Euros


Historic buildings with a taxable value of up to EUR 400,000 are exempt from ENFIA, while temporary exemptions may also be provided for properties located in certain regions of the country. To see if you qualify, be sure to consult a tax professional for more details.


ENFIA 20% Reduction if you are Insured


If your home has a taxable value of up to €500,000 and is insured against fire, earthquake, and flooding, you may be eligible for a 20% discount on ENFIA. Starting in 2026, Greece will introduce major property tax changes: 50% ENFIA reduction for primary residences in villages (full exemption by 2027), lower rental income taxes with a new 25% rate for €12,001–€24,000, reduced VAT for border islands, and VAT exemption for new constructions. These measures make owning and renting property in Greece simpler and more affordable. You can read the detailed breakdown here.

Are you planning to rent out your home in Greece? To make a long story short, this new scheme rewards you for using your home for long-term rentals. There will be an income tax exemption for properties that were once declared as vacant (or previously used for short-term rentals), but that will now be used for long-term rentals. The conditions for the exemption are:

-Size: The property needs to have a surface area of up to 120 sqm
-Timing: Three-year leases must be entered into between September 8, 2024, and December 31, 2026
-Property’s History: To be eligible, the property must have a history of being vacant or being used only for short-term rentals in 2023, 2024, and 2025


The new tax laws are not yet confirmed and could change in the coming months. Be sure to consult a tax professional for the most up-to-date details. For all new tax exemptions for homeowners in Greece, read more here.


What Are My Property Taxes if I'm Dutch?


As a resident of the Netherlands, you are subject to taxation on your global income, including income from property in Greece. The Dutch personal income tax system comprises three ‘boxes’. Income derived from investments, such as real estate assets, falls under what is known as ‘box 3’, which also covers properties like a residence in Greece.Over the past years box 3 is under scrutiny, as the question has arisen whether the current system conflicts with fundamental rights, particularly the right to ownership. Adjustments have been made to the tax system, and further developments are ongoing. However, the impact on the Dutch tax concerning your Greek property is limited.Under the double tax treaty between the Netherlands and Greece, the authority to impose taxes on the Greek property lies with Greece, as it is the source of the income. Consequently, while income from the Greek property must be reported in the tax return, double tax relief can be sought.


The Current System


Presently, box 3 classifies assets into three categories: savings, other assets (such as shares, bonds, securities, second homes, cryptocurrency), and loans. A predetermined return is assumed based on the asset category to which it belongs.


Developments


Due to the assumption-based nature of the box 3 regime, wherein fixed returns are applied rather than actual investment income, some taxpayers may need to dip into their capital if their actual income falls below the assumed returns. These circumstances have led to various court cases, with rulings often favoring taxpayers by reducing their tax base to reflect actual box 3 income.These cases have been subject to appeals, with the Dutch Supreme Court about to rule on matters such as the potential conflict with the right to ownership and the definition on actual income (including consideration of unrealized increases in value).The Government announced to introduce a new tax system as of 2027 that will be based on the actual income from investments. A legislative proposal has been presented to the public in September 2023, which still is undergoing changes. Basically, for real estate assets, this system taxes the actual rental income and expenses are deductible. The capital gain is taxed upon the selling of the property.


Other Notes about Box 3 Income


Box 3 income from savings and investments is only taxable if the net difference between the value of the assets and debts exceed the tax free thresholds, set at € 59.357 per person for 2026 (or € 118,714 for fiscal partners). It’s anticipated that the proposed tax system for 2027 will likely introduce a tax-free income threshold.


Double Tax Treaty Between Greece and the Netherlands


The double tax treaty between Greece and the Netherlands governs the taxation of residents in one country with income sourced from the other. Under this treaty, income derived from real estate is allocated to the country of origin, aligning with international standards. Essentially, while global income is accounted for in tax returns, relief is granted for Greek-sourced real estate income. Consequently, in principle, Dutch residents possessing secondary residency in Greece shouldn’t be liable for Dutch personal income tax in this respect.

Greece has a special tax program to encourage high-net-worth individuals (HNWI) to transfer their tax residence to Greece. Similar to the benefits to pensioners who move their tax residence to Greece, this is a great deal when stacked up to tax systems in other countries, where income for high earners can be taxed up to 50%. Instead of paying a percentage tax on the foreign income, Greece offers you the possibility to pay a flat rate of 100,000 euros per year on the foreign income by transferring your tax residence to Greece. You can add a family member for 20,000 Euros per year. The flat rate is applicable for a period of 15 years. A similar tax system is available in Italy, where taxpayers who join the “Res Non-Dom Program” are taxed with a lump sum of 100,000 Euros on foreign-sourced income, and can add a family member for an additional 25,000 Euros each.

The individual making the application has not been a tax resident in Greece for 7 out of the last 8 years before they transferred their tax residence to Greece.The applicant, a relative (spouse or ascendants/ descendants in a straight line) or through a legal entity in which the applicant has the majority of shares, must invest a minimum of €500,000,00* in Greece. The investment can be made in various forms, such as real estate /movable property or shares in a legal entity in Greece.The amount of investment needs to be at least 500,000 Euros and made within a period of 3 years from the date of application.*The above condition is not necessary if the applicant already has a resident permit by investment in Greece or the Golden Visa.

If you elect for this tax regime, the application must be filed by 31 March, and supporting documents must be submitted by May. The taxation under the regime works as follows: You will pay a flat rate of 100,000 Euros per year, no matter the level of foreign income for the year. If a relative wants to be covered by the provisions, an additional 20,000 Euros per year must be paid. Foreign-sourced income is not subject to reporting to the tax authorities. It should be noted that any tax paid abroad on income covered by this regime will not be offset against the tax liability according to the scheme. The individual will also be exempt from the Greek inheritance and gift (donations) tax for any foreign assets. However, Greek-sourced income needs to be declared annually in a personal income tax return and is taxed as Greek personal income tax.

For a look into other tax schemes in Greece, like taxes on retirees in Greece, see here. For more information and detailed consultations, we recommend consulting a tax professional with knowledge of these systems.


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.