Property Taxes in Greece: The Ultimate Guide by Experts

Several circumstances will require individuals to pay property taxes in Greece: You will have to pay taxes when acquiring property in addition to annual property taxes for ownership. You must also pay taxes on rental income if you rent out a property since it was made obligatory by tax authorities.

The good news is that property taxes in Greece are lower than those in the US, although some property taxes and taxable income may be higher than in some EU countries. In Greece, the tax office is responsible for processing and collecting taxes, including income and property taxes. Taxpayers must visit the tax office or use their online services to file returns and pay any due amounts by the specified deadlines.

Nevertheless, the tax system is simple to navigate; you receive your Greece tax identification number as soon as you purchase a property, which can be managed online for property and other annual taxes. This guide will explain the essential details of taxes on real estate property in Greece.

Which Property Taxes Must You Pay in Greece?

There are certain taxes in Greece that every foreigner must consider, especially when purchasing real estate. As we dive into the specifics of the Greek property tax 2024, let’s take a look at the real estate taxes you can expect to pay in Greece:

• Personal or corporate income tax on rental income
• Real estate transfer tax on acquisitions
• ENFIA (uniform real estate property tax)
• VAT (Value-Added Tax)
• TAP (Telos Akinitis Periousias) municipal tax
• ENFIA (uniform real estate property tax)
• Special tax on corporate real estate holdings
• Capital gains tax on property sales
• Inheritance tax when acquiring real estate assets

Transfer Tax

All individuals, whether Greek tax residents or non-tax residents, must pay a real estate transfer tax when buying a home in Greece. The transfer tax rate is 3 percent of the taxable property value.

To determine a property’s value, the Greek Ministry of Finance established a new Objective Value system for prices per m2 in 13,808 property areas in the country in December 2021.

The Objective Value system determines a property’s worth according to its location, size, and technical specifications. This taxable value is then used to determine real estate taxation for the transfer. The real estate transfer tax is based on this value, and if the Objective Value exceeds the purchase price, you’ll pay tax on the Objective Value.

Note that when the Objective Value exceeds the purchase price, you’ll pay tax on the Objective Value. More significant investment properties may be transferred through a share arrangement, exempting them from real estate transfer taxes.

Rental tax 

When leasing out a real estate property in Greece, you must pay tax on your rental income. People have progressive tax rates depending on the gains accrued from the rent. 

In Greece, rental income is subject to taxation, and property owners must report their rental income to ensure compliance, as rental income is closely monitored by the tax authorities.

Rental income is part of the taxable income for corporations. The corporate tax rate is 22 percent, with a 15 percent dividend WHT. Foreign investors may qualify for the Parent-Subsidiary Directive exemption if they own Greek companies through an EU-based corporation, and there will be no dividend WHT in this situation.

Rental income was previously subject to solidarity contribution, calculated on a progressive tax scale of up to ten percent, with a person’s total income being used to determine mutual assistance. However, the solidarity contribution was abolished in 2023.

ENFIA

ENFIA (Unified Tax on the Ownership of Real Estate) is a standard real estate property tax. Both natural and legal entities that possess real estate in Greece must pay taxes yearly. There are two options for you to make an ENFIA payment: Either as a lump sum payment or five monthly payments between September and January.

The objective property value measured on 1 January each year serves as the ENFIA’s tax base. Tax authorities make an administrative tax assessment regarding ENFIA with two different tax rates:

• Primary tax: Each property is subject to a primary tax. The floor, price zone, surfaces, building age, facade, the proportion of ownership, and other specific elements are some of the criteria that determine the tax.
• Secondary tax: For individuals, the tax is assessed when the owner’s total property value exceeds €200,000. An additional secondary tax of 0.1 – 1.15 percent is for the excess amount. The tax is assessed on the aggregate value of each owner’s property with regard to legal entities, and it is 0.55 percent of the total value of all the properties. A tax rate for immovable property is 0.10 percent for properties utilized for conducting/producing business activities.

TAP

TAP (Telos Akinitis Periousias) is a municipal tax typically added to electricity bills and assessed at a rate of 0.025 to 0.035 percent of the property’s actual value. The owner of the property is subject to municipal tax. However, if the bill is issued in the tenant’s name, the sum is deducted from the monthly rent. The municipal tax amount is calculated based on the property’s assessed value and varies by municipalityMunicipalities may also apply additional taxes depending on the area, activity, and other factors.

Greek Property Taxes for Corporations

Special tax on property (SRET)

The special tax on property applies to all Greek corporations with real estate holdings. With this tax, the government expects to stop businesses from hiding their real estate properties.

The company must pay a 15 percent yearly rate on the property’s objective worth if it is not exempt.

The following exemptions apply:

• From corporations with registered shares to individuals, the companies must be tax residents of Greece or another country. Individual shareholders must also keep their Greek tax identification number current.
• Businesses that banks and prominent investors own are exempt from disclosing ownership information to individuals (if the latter are not established in the non-cooperative states and if they are being kept in check by a state’s authorized supervisory authority).
• Organizations whose shares are listed on a regulated exchange
• Shipping or ship owner firms with Greek offices that use their real estate only as offices or warehouses or lease to other shipping companies.
• Legal entities with a focus on philanthropic, educational, cultural, and religious activities for the buildings that are used to support those purposes and for abandoned buildings or other property that they exploit. The requirement is that any profits must be allocated to the goals mentioned above.
• Companies operating in Greece in commerce, industry, or manufacturing – the gross corporate income tax from this activity should be higher than the gross income from the real estate they own during the relevant fiscal year. Regardless of the country in which they were founded, if the aforementioned legal entities build a space to use solely for the pursuit of their commercial, manufacturing, or industrial activity (self-use), they are eligible for a seven-year SRET exemption beginning with the submission of all required paperwork for the granting of the building permit.
• For companies whose registered shares or stocks belong to a national or foreign institution seeking philanthropic objectives in Greece.
• Social security organizations, insurance funds, or real estate mutual investment companies and regulated funds supervised by the competent authority at the place of their registration. Except for those whose registered office is in non-cooperative states.

Taxes on exit

Income from the sale of real estate is included in the company’s taxable profits when it sells its property. They are, therefore, subject to the standard income tax rate. The most typical exit structure is a share deal.

Greek entities that transfer non-listed shares in Greek companies are subject to a 22 percent income tax rate. When selling shares in a Greek or foreign corporation that invests in real estate in Greece, two categories are exempt from paying capital gains tax:

• Legal entities from other countries without a permanent presence in Greece
• Individuals who are tax residents of nations with which the government of Greece has signed a DTA (Double Taxation Agreement)

Other Greek Property Taxes

Capital gains tax

If you have owned a real estate property for less than five years and decide to sell it, your profits will be subject to a 15% tax, also known as the capital gain tax. The capital gains tax is calculated based on the difference between the purchase price (adjusted for any improvements and inflation) and the sale price.

However, the profits you gain from a property will not be subject to a capital gains tax if you have owned it for more than five years.

Remember that if you are a tax resident of another nation, your capital gains tax rate may be higher, depending on international tax agreements.

Inheritance tax

The tax rate for transferring movable and immovable property depends on the objective property value and the relationship between the deceased and the beneficiary. Parents, spouses, children, grandparents, and grandchildren pay the following inheritance tax rates on real estate:

Other relatives a liable to pay an inheritance tax of 5 to 20 percent on inherited real estate properties valued at €30,000 or more.

Greece Non-Dom Tax Regime

In December 2019, Greece implemented a new non-dom tax regime, which allows foreign nationals who transfer their tax residence to Greece to exclude foreign income from taxation. Instead, they can fulfill their tax obligations by paying a fixed annual value of €100,000. A distinct feature of the non-dom regime is that the tax exemption is extendable to relatives of the non-dom resident, provided they pay an additional annual fee of €20,000 per dependent.

Paying Greek Property Taxes

To get your tax identification number, you must visit a tax office. However, most foreign buyers grant their attorneys power of attorney to take care of things on their behalf.

Engaging with an accountant while filing taxes could be beneficial to avoid any future hassles. Many foreign property owners are already doing this. You’ll pay about €1,000 a year for it.

If you get rental income in Greece, you must file the annual tax report for the previous year anytime between the end of December of that year and before the start of July the following year.

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Frequently Asked Questions about Property Taxes in Greece

How much is property tax in Greece for foreigners?

When purchasing a home in Greece, the buyer must pay a property tax at the rate of 3.09 percent of the property’s value.

A capital gain is taxed at 15 percent if there is an increase in capital after selling property in Greece. Also, landlords are subject to a 15 – 45 percent tax on their rental income. There are also a few countries that have no property tax.

How much is property tax in Greece for foreigners?

When purchasing property in Greece, a tax of 3.09% of the property value is applied. If the property is sold and generates a capital gain, it is taxed at 15%. Rental income is taxed between 15% and 45%, depending on the amount earned.

Is it smart to buy property in Greece?

Given the country’s high quality of life and low cost of living, most Americans who retire in Greece live a comfortable lifestyle.

An added benefit of buying Greek property is that a real estate purchase worth €250,000 or more provides eligibility for the Greece Golden Visa and a permanent residence permit.

In Greece, a supplementary tax is imposed on individuals owning properties with a total value exceeding €250,000, calculated at a progressive rate based on the property’s assessed value.

Can a foreigner buy property in Greece?

Any foreigner can buy a home in Greece, and there are no restrictions on it. Citizens of non-EU nations may even qualify for the Golden Visa Greece program if they invest a minimum of €250,000 in the Greek real estate market.

What is the ENFIA tax in Greece?

The Unified Tax on the Ownership of Real Estate (ENFIA) is a tax imposed on real estate properties in Greece owned by all individuals and legal entities on 1 January of each year.

How to pay Greek property tax online?

There are four ways how to pay property tax in Greece:

• Go straight to the cashier at your Greek bank
• Transfer money from a European bank outside of Greece
• On the Greek municipality’s official website
• Via the Paytm mobile app

How long can you stay in Greece if you own a property?

If you purchased Greek property with a total value of at least €250,000 to obtain a Greece Golden Visa, you can stay in Greece indefinitely, provided you maintain your purchase for at least five years.

What are the rules for property tax on rental income in Greece?

In Greece, property tax on rental income is subject to a progressive tax rate. Rental income up to €12,000 is taxed at 15%, from €12,001 to €35,000 at 35%, and over €35,000 at 45%.

Property owners must also pay the ENFIA (Single Property Tax), which is calculated annually based on property value. It’s essential to declare rental income in the annual tax return to avoid penalties.

Special tax deductions or allowances may apply under certain conditions.

How often do property taxes need to be paid in Greece?

In Greece, property taxes, specifically the ENFIA (Single Property Tax), are typically paid annually.

Tax authorities divide this into five or six monthly installments, starting in September or October, depending on the government’s schedule for that year.

Homeowners receive a notice from the tax authority with payment details, and it’s crucial to adhere to the payment deadlines to avoid penalties.

Staying updated with the annual tax notices is essential for compliance.