You’re on your way to buying your dream property in Greece. The home you viewed has a sea view, access to the beach, and your favorite taverna is within walking distance. The home has captured your heart, and you’re convinced it’s the right place for you. When purchasing a property in Greece, one thing to keep in mind for the future are taxes.
Taxes at Time of Purchase
On most real estate sites, all prices are excluding taxes. In purchases of a home in Greece, one of two taxes will apply: Transfer tax or 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 sum, and it’s for the buyer 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)
Good to know: all homes on our website include VAT, where applicable. 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 2024. 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.
Annual Taxes
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 & €35,000: 35 percent
- Greater than €35,000: 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.
With two buyers, the tax brackets are as follows:
- Up to a rental income of €24,000: 15 percent
- Between €24,001 & €70,000: 35 percent
- Greater than €70,000: 45 percent
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.
Capital Gains Tax
Good news – according to current legislation, the capital gains tax is suspended in Greece until 2024, and the suspension will likely be extended after that every 2 years. This means that as an individual seller, you won’t be taxed in Greece for any profit you make on the sale of your property. Keep in mind that if you are a resident of another country, you may have capital gains taxes in your home country. However, Greece has treaties to avoid double taxation with many nations. Be sure to consult a tax professional in your home country for more details.
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.
Tax Exemptions for Greek Homeowners in 2025
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.
Income Tax Exemption for Three Years for Rentals
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, 2025
- Property’s History: To be eligible, the property must have a history of being vacant or being used only for short-term rentals in 2022, 2023, and 2024
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, fall 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.
In 2024, a fixed return of 6.04% is calculated for ‘other assets’ based on the asset’s value (6.17% in 2023). The personal income tax rate for box 3 is set at 36% in 2024 (32% in 2023).
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 € 57.000 per person for 2024 (or € 114.000 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.
Greek Tax Scheme for High Net Worth Individuals
Greece has a special tax program to encourage high net worth individuals (HNWI) to transfer their tax residence to Greece. Similar to 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 you 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.
What Are The Requirements?
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.
How Does the HNWI Greek Tax System Work?
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 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.
