Which are the structures that can be legalized by submitting to the legalization law? Which is the process to legalize a property? In this section you will learn what constitutes an illegal property, the penalties, and how to proceed.

Greece Property Taxation: Property taxes in Greece apply only to real estate, which means land and buildings, and are not levied on cars, business inventory, or any other type of personal property. Certain types of property are exempt from property taxes in Greece; these include places of worship, places of burial, charitable and educational institutions, and government property.

0.9 %

Real estate purchase tax of the property value

0.5 %

Real estate tax of the cadastral value per annum

0 %

Capital gains tax of the increased value

In Greece, according the law non-residents pay the same property taxes as residents.

Purchase

The property purchase tax amount may vary greatly:

  • Buyers pay a 24% VAT on new-builds with permits issued after 1 January 2006.
  • For properties built before 2006 only the title deed transfer tax — 3.09% of the property value — applies.

Buyers have to pay a registration tax ranging from 0.475% to 0.775% of the transaction value when purchasing any property.

Sale

Capital gains tax on the sale of real estate by individuals has been suspended until 31 December 2018. Companies pay capital gains tax at the corporate tax rate of 29%.

Ownership

The annual real estate tax has two components. The main part ranges from €0.001/m² to €13/m². The precise amount is determined by a number of factors: area, property value, building date, and so on. There is an additional levy for properties of at least €200,000 in cadastral value at rates from 0.10% to 1.15%, depending on the property price, which individuals have to pay. For legal entities, the additional levy is fixed at 0.55% of the property’s cadastral value.

There is also an annual municipal tax, which ranges from 0.025% to 0.035%, depending on the location of the property.

Donation

For close relatives there is an inheritance tax of 1% to 10% of the property cadastral value after the deduction of a tax-free portion. For other heirs, the tax rate reaches 40%.

The gift tax rate runs at 10%, 20% or 40%, depending on the relationship between the donor and the recipient.

Lease

Individuals pay a rental income tax of 15% to 45%, depending on how much they receive. Property maintenance costs are deducted from the tax base.

Annual income, € Tax rate, %
Up to €20 000 22%
€20 001 – €30 000 29%
€30 001 – €40 000 37%
Over €40 000 45%

Companies pay rental income tax at the corporate tax rate of 29%.

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in Greece before proceed to the purchasing.

Greece Property Taxation: For more information you can download our updated Property Taxes Highlights (2019 Updated)

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