Greece Property Taxes

Property taxes in Greece encompass several categories, each contributing to the overall tax burden for property owners. One significant tax is the Single Property Tax (ENFIA), which is levied annually based on the objective property values determined by the Greek government.

Understanding the Fiscal Landscape for Property Owners.

There is a Capital Tax on Immovable Property (FMAP), payable upon property acquisition, and a Capital Gains Tax on property sales. Property owners are also subject to municipal property taxes, determined by local authorities, and a Unified Real Estate Ownership Tax (ETAK), which is payable by property owners and calculated based on the property’s objective value.

These various property taxes contribute to the fiscal landscape for property owners in Greece, shaping their financial responsibilities and considerations in property ownership and transactions.

Read the latest property buying tips, guides & advice from ARENCORES and Chania Real Estate.The ultimate source of information to buying your first property in Chania, Crete, Greece.

Acquiring property in Greece necessitates a singular tax payment, whether through a purchase, donation, or inheritance acknowledgement.

This levy applies to the right in rem, which encompasses various property rights such as ownership, usufruct, habitation, and surface rights. These rights are regarded as taxable capital, thus subject to taxation.

Property Taxes Highlights

Greece Property Taxes

As of today in 2024, the landscape of property taxes continues to evolve. Greece remains committed to enhancing tax collection methods and fostering fiscal stability. Legislative updates may have further refined the property tax system, aiming to simplify processes and address any lingering inefficiencies.

In the pursuit of attracting investment and ensuring regulatory adherence, modern real estate enterprises require a robust operational framework that offers insights into the intricate landscape of Greek property taxes and transaction fees. ARENCORES underscores the pivotal role of a firm’s investment and property portfolio management in facilitating daily operations, enhancing performance, sourcing, fostering business development, and identifying valuable assets.

In Greece, the efficiency of tax collection trails behind the European average, hindered by the complexity and inefficacy inherent in the system. The structure of Greek property taxes is marked by elevated tax rates that often fail to yield the anticipated revenue. Despite a semblance of stability in total annual tax revenues, the landscape is perpetually shifting due to frequent alterations in tax parameters, resulting in a myriad of peculiarities.

Furthermore, a robust infrastructure empowers real estate firms to operate with transparency, thereby bolstering investor and shareholder confidence and showcasing lucrative investment prospects. By prioritizing transparency, adhering to regulatory standards, and leveraging accurate, dependable data, these firms effectively mitigate risks and make informed decisions regarding asset investments. Ultimately, they possess the capability to realize the coveted, higher Return on Investment crucial for success.

Property Taxes in Greece 2024: Evolution and Future Outlook

Legislative Reforms and Tax Rates: Recent legislative reforms have aimed to streamline the property tax system, making it more transparent and user-friendly. While tax rates have been adjusted in response to economic conditions, they remain a critical discussion point, especially in high-demand regions where property values have surged. These adjustments seek to balance the need for revenue with the goal of maintaining a competitive real estate market.

Digital Transformation and Compliance: The push towards digitalization has accelerated, with sophisticated online platforms and digital tools now integral to the tax administration process. These technologies facilitate easier tax declarations, payments, and communication between taxpayers and authorities. Enhanced digital infrastructure not only simplifies compliance but also reduces administrative burdens and minimizes errors.

Economic Impact and Relief Measures: The economic aftershocks of the COVID-19 pandemic continue to influence tax policy. Relief measures introduced during the pandemic have been adapted and extended to support property owners still recovering from financial hardships. These measures include temporary tax reductions, extended payment deadlines, and targeted assistance for vulnerable groups.

Sustainability and Green Tax Incentives: In alignment with global trends, Greece is also integrating sustainability into its property tax policies. New incentives for energy-efficient buildings and eco-friendly developments have been introduced. Property owners investing in green technologies and sustainable practices may benefit from tax deductions and credits, promoting environmental responsibility alongside economic growth.

Future Outlook: Looking forward, Greece’s property tax system is expected to undergo further modernization. Continuous efforts to enhance tax collection mechanisms, coupled with responsive adjustments to economic and regulatory changes, aim to create a more efficient and equitable system. Policymakers are likely to focus on fostering a stable real estate market, encouraging investment, and ensuring that the tax system supports both fiscal health and sustainable development.

0.9 %

Real estate purchase tax of the property value.

0.5 %

Real estate tax of the cadastral value per annum.

0.0 %

Capital gains tax of the increased value.

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.

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.

Property taxes in Greece are exclusively levied on real estate, encompassing both land and buildings, and do not extend to cars, business inventory, or other types of personal property. Several property types are exempt from these taxes, including places of worship, burial sites, charitable organizations, educational institutions, and government-owned properties.

This exemption framework aims to support religious, cultural, and public service institutions by relieving them from the financial burden of property taxes.

Property Taxation System Greece - Chania Real Estate

Everything you need to know about the property transaction and home buying process in Chania, Crete.

Whether you’re looking for a detached house, a city center apartment or an office space, our guide will take you through all the required stages, from choosing a property which has the right usage classification to the finer points of the property transaction contracts and completion.
A Comprehensive Guide by ARENCORES, Tailored for Property Buyers and Investors Delving into the Chania Real Estate Market.
Greek Real Estate Data Sources and Research (REDS)
REDS - Real Estate Data Sources and Information for the Greek Real Estate Sector by ARENCORES, Chania Real Estate Experts.

Finding a Professional Real Estate Team in Chania, Crete.

At ARENCORES, we meticulously select target references by identifying serious and trustworthy potential buyers for your property. We enhance the commercial appeal of our listings through dedicated research and services, including property documentation reports and targeted marketing strategies.

With years of experience in Chania’s real estate market, ARENCORES has achieved a high level of specialization and professionalism, aimed at expanding and significantly improving our range of services.

Our goal is to establish trust-based relationships with our clients by offering our expertise and utilizing all our resources to ensure a successful transaction within a short timeframe.

Located at 66 Apokoronou Street, 73135, Chania, Crete, our office operates from 8:30 a.m. to 5:00 p.m., Monday through Friday.

For inquiries or to schedule an appointment, contact our team at +30 2821112777 or email us at contact@arencores.com.

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