Selling property in Greece as a foreign owner involves several tax obligations that must be understood and properly managed. Foreign owners do not pay transfer tax; however, understanding the buyer’s transfer tax obligation helps anticipate how it may affect price negotiations. Understanding these tax implications helps you plan effectively and avoid delays during the selling process.
What taxes do foreign owners pay when selling property in Greece?
Foreign property owners selling Greek real estate must ensure that all ENFIA property tax installments for the current year are fully paid — even those not yet due — before sale completion, along with potential income tax reporting requirements in both Greece and their home country. The transfer tax of 3.09% is typically paid by the buyer rather than the seller, though this affects negotiation dynamics and final sale proceeds. Sellers must obtain a tax clearance certificate proving no outstanding debts to Greek tax authorities before the notarial transfer can proceed.
The distinction between resident and non-resident tax treatment matters primarily for income tax reporting obligations rather than the sale itself. Non-residents must maintain a Greek tax identification number (AFM) throughout the ownership period and ensure all annual ENFIA property tax payments remain current. Any accumulated property taxes from previous years, including penalties and interest, must be settled before ownership can transfer to a buyer.
Municipal taxes (TAP), collected through electricity bills, must also be up to date before the sale, as they form part of the property’s overall tax obligations. These charges are calculated as a small percentage of the property’s objective value and must be cleared regardless of when they accrued during your ownership.
How is capital gains tax calculated for non-residents selling Greek property?
Capital gains tax on property sales in Greece is currently suspended for individuals until December 31, 2026, meaning foreign homeowners selling their Greek property face no capital gains tax liability during this period. This suspension has been in effect for many years and continues to benefit individual sellers regardless of residency status or how long the property has been owned.
Should the suspension end, capital gains tax would theoretically be calculated on the difference between the purchase price and sale price, with allowable deductions for documented renovation costs, notary fees, and other purchase-related expenses. However, this framework has not been actively applied to individual property sales for an extended period, and the Greek government has consistently extended the suspension.
It’s worth noting that this exemption applies only to individuals. For companies and legal entities, profits from property sales are taxed as ordinary business income at a 22% corporate income tax rate on the difference between sale proceeds and the property’s tax book value, regardless of holding duration. This corporate rate was reduced from 24% in 2021 and applies to all business entity property transactions.
Greek tax authorities do monitor property sales patterns. Selling three or more properties within any rolling two-year period may classify the activity as business operations, unless the sales clearly involve inherited or family-transferred properties, subjecting the sales to progressive income tax rates ranging from 9% to 44% rather than the suspended capital gains treatment. This threshold applies even to inherited or gifted properties sold within the timeframe.
Do I need a Greek tax identification number to sell my property?
Every property seller in Greece must possess a Greek tax identification number (AFM) regardless of nationality or residency status. This requirement is mandatory for all property transactions and cannot be waived. The AFM serves as your permanent identification within the Greek tax system and remains active throughout your property ownership and beyond.
Foreign owners who purchased property years ago already have an AFM issued during their original purchase. If you’ve misplaced your AFM or cannot locate it in your purchase documents, you can retrieve it through the Greek tax authority’s online platform (myAADE) or by contacting a Greek tax office directly. Your notary or legal representative can also assist in recovering this information from tax authority records.
The AFM plays a critical role beyond the sale itself. It connects you to all tax obligations including annual ENFIA property tax bills, municipal taxes, and any income tax reporting requirements. When you sell, the notary requires your AFM to verify tax compliance, obtain clearance certificates, and properly execute the ownership transfer deed. Without a valid AFM, the notarial process cannot proceed.
For foreign sellers living abroad, the AFM also facilitates power of attorney arrangements if you prefer not to travel to Greece for the sale. Your legal representative can act on your behalf using properly authenticated documentation, but your personal AFM remains the foundation of all tax-related procedures throughout the transaction.
What is a tax clearance certificate and why do I need it?
A tax clearance certificate, officially known as a certificate of non-indebtedness, is a document issued by Greek tax authorities confirming you have no outstanding tax obligations. This certificate is absolutely essential for completing any property sale in Greece, as notaries are legally prohibited from executing ownership transfer deeds without it. The certificate verifies that all property-related taxes have been paid through the date of sale.
The clearance certificate specifically verifies payment of ENFIA property tax, municipal taxes (TAP), any income taxes related to property rental, and other obligations connected to your AFM. It confirms not only that taxes are current but also that no penalties, interest, or administrative fines remain unpaid. Greek tax authorities conduct a comprehensive review of your tax account before issuing the certificate.
Processing times vary widely depending on tax office workload and whether outstanding issues exist. The application process begins through your AFM account on the myAADE platform or through a tax representative. We recommend initiating this process well before your planned sale completion date to avoid delays.
If the tax authority identifies outstanding obligations during the clearance review, you must settle these amounts plus any accumulated interest before the certificate can be issued. This requirement often surprises foreign owners who may be unaware of missed ENFIA payments from previous years or other accumulated charges. Professional legal assistance can help identify potential issues early and resolve them efficiently before they delay your sale.
Who pays the property transfer tax when selling in Greece?
In Greek property transactions, the buyer typically pays the 3.09% transfer tax on resale properties, not the seller. This standard practice differs from some countries where sellers bear transfer tax costs. However, understanding this structure remains important for sellers because it directly affects negotiation dynamics and the net proceeds you receive from the sale.
The transfer tax is calculated on the higher of either the agreed purchase price or the government-determined objective value of the property. Buyers must pay this tax at the local tax office before the notarial contract signing, and the payment receipt becomes part of the permanent property documentation. This timing means the tax obligation is resolved before ownership transfers.
While sellers don’t directly pay the transfer tax, buyers factor this cost into their total acquisition budget, which can influence the price they’re willing to offer for your property. In competitive markets, buyers may negotiate lower purchase prices to offset their transfer tax obligation. Understanding this dynamic helps you set realistic pricing expectations and negotiate effectively.
The 3.09% rate applies to most resale property transactions and represents one of Europe’s more competitive transfer tax rates. New construction properties follow different rules, with buyers paying 24% VAT instead of transfer tax, though this VAT is currently suspended through December 31, 2025. Regional variations in transfer tax rates do not exist in Greece; the 3.09% rate applies uniformly across all areas including islands and mainland regions.
How do I report the sale of Greek property to tax authorities in my home country?
Foreign sellers face dual tax reporting obligations, requiring you to declare the property sale both in Greece and in your country of residence. Even though capital gains tax is currently suspended in Greece, you must still report the transaction to Greek tax authorities through your AFM. Your home country may have different rules requiring you to declare the sale on your annual tax return regardless of Greek tax treatment.
Double taxation treaties between Greece and major European countries including Germany, the Netherlands, and Belgium typically prevent the same income from being taxed twice. These treaties generally allocate primary taxation rights to the country where the property is located (Greece), with your home country providing foreign tax credits or exemptions for taxes paid in Greece. However, reporting requirements exist even when no additional tax is owed.
Maintaining comprehensive documentation throughout the ownership period and sale process is essential for both jurisdictions. Keep records of your original purchase price, notary fees, renovation costs, annual ENFIA payments, and final sale proceeds. These documents support accurate reporting and help establish the transaction details if either tax authority requests clarification.
The complexity of cross-border tax reporting varies significantly based on your home country’s tax system and the specific circumstances of your sale. German and Dutch tax authorities, for example, have different approaches to foreign property sales despite both countries having double taxation treaties with Greece. Professional tax advice from advisors familiar with both Greek and your home country’s tax systems helps ensure compliance in both jurisdictions. For a complete overview of the legal and administrative process, refer to our comprehensive guide to selling your home.
What happens if I have unpaid property taxes from previous years?
Accumulated property taxes from previous years must be fully settled before sale completion, as outstanding obligations prevent the issuance of the tax clearance certificate required for ownership transfer. The most common outstanding tax is ENFIA (annual property tax), though municipal taxes (TAP) collected through electricity bills and other property-related charges may also accumulate if you’ve been absent from Greece for extended periods.
Penalties and interest on overdue tax amounts compound monthly at a rate of 1%, significantly increasing the total amount owed over time. For example, unpaid ENFIA from three years ago would carry substantial accumulated interest on top of the original tax amount. Greek tax authorities automatically calculate these penalties when you request a tax clearance certificate, providing a complete settlement figure including all accumulated charges.
The process for resolving tax arrears begins with obtaining a detailed statement of your tax account through the myAADE online platform or through a tax representative. This statement identifies all outstanding obligations, calculates accumulated interest, and provides the total amount required for clearance. Payment can typically be made through the myAADE system or at Greek banks, with immediate electronic confirmation to tax authorities.
Professional legal assistance proves particularly valuable when addressing accumulated tax obligations. We help foreign sellers identify potential issues early in the sale process, obtain accurate settlement figures from tax authorities, facilitate payments from abroad, and ensure clearance certificates are issued without delay. This proactive approach prevents last-minute surprises that could derail your sale timeline or force rushed payments under pressure from waiting buyers.
Can I minimize my tax liability when selling Greek property as a foreigner?
Legal tax planning strategies for foreign sellers focus primarily on proper documentation and timing rather than complex avoidance schemes, given that capital gains tax remains suspended for individual sellers. The most important strategy involves maintaining comprehensive records of all property-related expenses throughout your ownership period, including renovation costs, legal fees, notary charges, and improvement expenses. While these deductions don’t currently apply due to the capital gains tax suspension, maintaining documentation protects you if tax rules change.
Timing considerations matter primarily for avoiding the three-property threshold that triggers business activity classification. If you own multiple Greek properties, spacing sales beyond the two-year rolling window prevents the automatic reclassification that would subject proceeds to progressive income tax rates of 9% to 44%. This planning becomes especially important for investors who acquired several properties over the years.
Understanding which expenses are deductible helps you maintain appropriate records even during the suspension period. Documented costs for property improvements, structural renovations, notary fees, legal expenses, and transfer taxes paid at purchase would potentially reduce taxable gains if capital gains taxation resumes. Routine maintenance and cosmetic updates typically don’t qualify as deductible improvements, but structural work, additions, and major system upgrades generally do.
The distinction between legitimate tax optimization and illegal tax evasion is critical. Proper documentation, accurate reporting, and compliance with all filing requirements represent appropriate tax planning. Underreporting sale prices, creating fictitious expenses, or failing to declare transactions constitute tax evasion with serious legal consequences including penalties of double the evaded tax plus interest, and potential criminal charges.
Professional tax advice becomes especially valuable for complex situations involving multiple properties, corporate ownership structures, or significant capital gains. Tax advisors familiar with both Greek tax law and your home country’s system can identify legitimate optimization strategies specific to your circumstances while ensuring full compliance in both jurisdictions.
Selling your Greek property involves navigating various tax obligations and administrative requirements that can seem overwhelming from abroad. Our multilingual legal team handles the complete process, from obtaining tax clearance certificates and settling any outstanding obligations to coordinating with notaries and ensuring compliant documentation for both Greek and international tax authorities. If you’re considering selling your Greek property and want professional guidance through the tax and legal requirements, please contact our team for personalised assistance tailored to your specific situation.
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.
