Buying a home in Greece involves more than just the purchase price – there are taxes to consider at every stage, from buying and owning to renting out or selling. This guide is designed to help overseas buyers avoid unexpected costs and plan their finances with confidence.
If you’re planning to buy a property in Greece, it’s essential to understand how Greek property taxes work. From the moment you buy, through to annual ownership and eventual sale, taxes can affect your budget and long-term financial plans. Here’s what you need to know…
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Contents
- Do you count as a tax resident in Greece?
- Purchase taxes in Greece
- Annual property taxes
- Tax on rental income
- Capital gains tax
- Inheritance tax
- Get professional tax advice
Do you count as a tax resident in Greece?
The Greek tax year runs from 1st January to 31st December. If you spend more than 183 days in the country during that time, you’re considered a tax resident. This means you’ll need to declare your global income in Greece and file a return by 30th June of the following year.
However, even if you’re not tax resident in Greece, you’ll still be liable for certain property-related taxes – for example, ENFIA and income tax on rental earnings. It’s important to register for a Greek tax number (AFM) when you purchase property. Without it, you can’t complete the transaction or pay your taxes.
Even if you’re not tax resident in Greece, you’ll still be liable for certain property-related taxes
Purchase taxes in Greece
When you buy a property in Greece, you’ll be taxed based on its “objective value” (also known as tax value). This figure is calculated by the government and considers factors like square metre price, location, building age, floor level and access to local amenities. The objective value often differs from the actual sale price, and it’s what tax authorities use to calculate most property taxes.
| Tax type | Rate | Applies to |
|---|---|---|
| Transfer tax (FMA) | 3.09% | All resale properties |
| VAT | Currently 0% | New-builds with building permits issued after 2006 – VAT has been suspended until end 2025 |
| Stamp duty | 2% | May apply in some circumstances – always confirm with your lawyer |
If you’re buying off-plan or a newly built property, VAT may eventually apply at 24%, but the exemption first introduced in 2019 has been extended several times. Still, this is an area to check before signing contracts.
Annual property taxes
Once you’ve purchased your home, you’ll pay taxes each year, even if you’re not living in it full-time. The most important ones are ENFIA and TAP.
- ENFIA (Unified Tax on the Ownership of Real Estate): Charged on all property owners in Greece. The basic rate is calculated using the objective value and the property’s characteristics (floor level, age, area zone, number of façades). If your property is worth over €200,000, you’ll also pay a secondary tax, which can range between 0.1% and 1.15% of the total value.
- TAP (municipality duty): This local tax typically ranges from 0.025% to 0.035% of the objective value. It’s often collected through your electricity bill. If you rent out the property, the landlord remains responsible for paying this tax, not the tenant.
Tax on rental income
If you let out your Greek property – whether on Airbnb, Booking.com or long-term – you’ll need to declare the income in Greece and pay tax on it. The Greek tax authorities have ramped up enforcement, especially for short-term lets, so it’s essential to be compliant.
The tax bands for rental income are:
- 15% on income up to €12,000
- 35% on the portion between €12,001 and €35,000
- 45% on income above €35,000
If you rent more than two properties on a short-term basis, this may be classified as a business, meaning you’ll need to register with the tax office and comply with business obligations, including social security contributions and 13% VAT.
That said, you may qualify for deductions – for instance, if you upgrade the building to make it more energy efficient or carry out structural improvements.
Capital gains tax
Capital gains tax only applies if you sell the property within five years of acquiring it. In this case, you’ll pay 15% on the net profit (the difference between the sale price and the original purchase price, adjusted for allowable costs).
If you sell after holding the property for more than five years, capital gains tax currently does not apply – a generous rule that may benefit long-term investors or lifestyle buyers looking to sell later in retirement.
Inheritance tax in Greece
Greece has an enforced heirship system in line with the EU directive. However, non-EU citizens can often override this by making a Will under the laws of their own country – as long as it’s officially recorded and valid in Greece. If you don’t have a Greek Will, inheritance laws may not distribute your property as you intended.
Inheritance tax is calculated based on the property’s objective value and the heir’s relationship to the deceased.
| Heir category | Tax-free allowance | Tax rate |
|---|---|---|
| Category A (spouse, children, grandchildren, parents) | €150,000 | 1-10% on the excess |
For distant relatives or unrelated individuals, allowances are lower and tax rates are higher. It’s another reason why drafting a Will with a bilingual Greek lawyer is essential if you own property there.
Get professional advice
Greek tax regulations are detailed, fast-changing and can have serious consequences if misunderstood. As a foreign buyer, it’s crucial to work with a tax advisor who understands both Greek rules and your home country’s obligations.
You may also benefit from speaking with a currency expert to time large international transfers effectively and protect your purchase from unfavourable exchange rate movements.
Tax planning should start early in the buying process – ideally before making an offer. That way, you’ll avoid surprises and set yourself up for long-term success.
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