Property Tax in Greece

Property Tax in Greece 2024. The Full List

The property tax system in Greece is designed to ensure a fair distribution of the tax burden among property owners and to regulate the real estate market.

It includes annual taxes on property ownership as well as taxes on property transactions such as buying, selling or transferring ownership.

These taxes are calculated based on various factors such as the location, size, value and use of the property, reflecting the diverse nature of the Greek real estate market.

The table below summarizes the taxes that individuals and companies are required to pay on real estate in Greece:

For Privates: Details on Property Taxes in Greece

Understanding property tax obligations is crucial if you are a property owner or if you plan to buy a house in Greece as an investment.

It affects financial planning and investment decisions, as the costs associated with property taxes can significantly impact the overall cost of owning and maintaining real estate.

For example, in the following table you can see a practical application of property tax in Greece for a house valued at €100,000.

* Based on a property valued at €100,000

Unified Property Tax (ENFIA)

€0.001 to €13 per m2 – The unified property tax is an annual tax that applies to all property owners in Greece, including individuals and legal entities, and is a significant component of property taxation in the country.

The ENFIA consists of a main tax and a supplementary tax.

The main tax covers most properties, with rates determined by objective criteria. It is calculated on a per square meter basis and varies according to factors such as the location of the property, zonal rates, age of the building, use and other specific characteristics.

The supplementary tax is aimed at higher value properties and is calculated in addition to the main tax. It applies to individuals who own properties with a total objective value of more than €250,000. The tax is progressive, ranging from 0% to 1.5%, depending on the total value of the real estate portfolio.

ENFIA is payable by all property owners, whether they are individuals or legal entities.

The tax is assessed annually and may be paid in several installments throughout the year. The exact payment schedule and deadlines are set by the Greek tax authorities and usually begin in the second half of the year.

Under certain conditions, properties used as primary residences may be partially exempt from ENFIA. Exemption criteria often include income limits, property size, and family status (e.g., large families). Properties owned by charitable organizations, religious institutions or the Greek government may also be exempt from ENFIA.

Municipal Property Tax (TAP)

0.025% – 0.035% – The Municipal Property Tax, is a small local tax levied on properties in Greece. It is collected by municipalities and is used to fund local services such as public area cleaning, street lighting and other municipal expenses.

The TAP rate is calculated based on the objective value of the property and typically ranges from 0.025% to 0.035% of the objective value of the property. The specific rate may vary depending on the municipality in which the property is located.

All property owners, including individuals and legal entities, are responsible for paying the TAP. It is usually included in and collected with the electricity bill. TAP is generally collected on a monthly or bi-monthly basis, depending on the electricity billing cycle. This method ensures regular and consistent collection of the tax.

Properties that serve public, religious, or charitable purposes may be exempt from TAP if they meet certain statutory and regulatory criteria.

TAP is a relatively small tax compared to other property taxes such as ENFIA. However, it is an important source of revenue for local governments and helps maintain municipal services and infrastructure. Because TAP is collected through utility bills, property owners must ensure that their contact and billing information is current to avoid missed payments and potential penalties.

Rental Income Tax

15% – 45% – Individuals earning income from the rental of real estate in Greece are subject to personal rental income tax.

Rental income tax is progressive, meaning that the rate increases as income increases.

The rates are as follows:

• 15% on annual rental income up to €12,000.
• 35% on the portion of the annual rental income between €12,001 and €35,000.
• 45% on the portion of the annual rental income exceeding €35,000.

The tax applies regardless of whether the income is from long-term rentals, short-term rentals (such as those listed on platforms like Airbnb), or other rental arrangements. Anyone who owns a rental property and receives income from renting it out must pay this tax.

The tax is calculated annually based on the total rental income received during the tax year. Property owners must report this income on their annual tax return, which is usually filed between December and July for the previous fiscal year.

Property owners may deduct certain expenses from their taxable rental income, such as property maintenance costs, management fees, and other allowable expenses. This deduction is often set at a flat rate, usually around 5%, but actual costs may also be taken into account.

For individuals who rent out multiple properties, especially short-term rentals, there may be additional regulatory requirements and potential VAT obligations if the number of properties or income exceeds certain thresholds.

Capital Gains Tax

15% – Capital gains tax is paid on the profit made on the sale of real estate in Greece. This tax is generally applied to the difference between the purchase price and the sale price, adjusted for inflation and certain expenses.

Capital gains tax is paid by the seller of the property and is usually due when the sale is completed. The seller is required to report and pay the tax as part of his or her annual tax return for the year in which the sale occurred.

To encourage long-term ownership, the capital gains tax applies to properties sold for a profit within five years of purchase, so properties held for more than five years may not be subject to this tax.

Capital gains tax on real estate transactions for individuals is suspended until the end of 2024. This suspension means that most individual sellers are currently not required to pay this tax on property sales.

It is worth noting that non-Greek residents may benefit from DTAs between Greece and their home countries, which may reduce or eliminate capital gains tax.

Transfer Tax

3.09% – It is a tax levied on the transfer of real estate. This tax is payable by the buyer and is usually due at the time of purchase.

Transfer tax is an important consideration for buyers in Greece as it affects the total cost of purchasing property.

The standard transfer tax rate is calculated on the objective value of the property, which is determined by the tax authorities using a standardized system known as the objective system (αντικειμενικό σύστημα).

This system calculates the value of the property based on various criteria, including the geographical location of the property, the age of the building, the size of the property and land area, the type of property and additional factors such as floor level, facade, view or other specific features. This value often differs from market value because it is based on objective criteria rather than current market conditions. It serves as the minimum taxable value for purposes of calculating taxes.

The tax is usually paid at the time of the real estate transaction, specifically at the signing of the notary deed. It is usually paid at the time of the signing of the notarial deed, as it is a prerequisite for the registration of the property transfer in the Property Registry.

For newly constructed properties, if the property is subject to value added tax (VAT), the standard transfer tax does not apply. Instead, the buyer pays VAT at the rate of 24%. However, there has been a temporary suspension of VAT on newly built properties until the end of 2024, allowing buyers to pay the 3.09% transfer tax instead.

Under certain conditions, first-time homebuyers or those purchasing a primary residence may be eligible for a reduced transfer tax rate or exemption.

Inheritance Tax

1% – 40% – Inheritance tax in Greece is levied on the transfer of real estate and other assets from a deceased person to his or her heirs. The tax rate depends on the relationship between the deceased and the heir, as well as the value of the inherited property.

The tax rates vary according to the degree of relationship between the deceased and the beneficiary. The rates are divided into three categories:

• Category A – Close relatives such as spouses, children, grandchildren, parents, and grandparents
  • 0% – Up to €150,000
  • 1% – €150,001 to €300,000
  • 5% – €300,001 to €600,000
  • 10% – Above €600,000
• Category B – Siblings, nieces, nephews, aunts, uncles, and their descendants
  • 0% – Up to €30,000
  • Above €30,000: 5% to 20%, depending on the exact value
• Category C – All other relatives and non-relatives
  • 20% to 40%, depending on the value of the inherited property

The beneficiaries of the estate are responsible for paying the estate tax. This tax must be paid on the property and assets they receive from the deceased’s estate.

The inheritance tax return must be filed within six months of the date of death if the deceased was a resident of Greece. If the deceased was resident abroad, the filing period is extended to one year. Payment of the tax is usually due at the time of filing, but may be paid in installments.

Greece has agreements with other countries to avoid double taxation, which may affect the inheritance tax due if the deceased had assets in several countries.

Value Added Tax (VAT)

24% – This tax is generally levied on new buildings and newly developed land sold by companies or professional developers. The property must be new and sold by a professional vendor. Previously owned properties or those sold by private individuals are not subject to VAT, but may be subject to other taxes such as transfer tax.

VAT is paid by the buyer of the property at the time of the transaction. It is usually included in the purchase price of the property and is collected by the seller, who then remits it to the tax authorities.

There is a temporary suspension of VAT on new construction, which has been extended until the end of 2024. This suspension allows buyers of new properties to pay the lower transfer tax rate of 3.09% instead of the 24% VAT. This measure is intended to stimulate the real estate market by making new properties more affordable.

Buyers who purchase a property as their primary residence may qualify for a VAT exemption under certain conditions. This exemption usually requires the buyer to meet certain criteria, such as not owning another property that meets their housing needs and using the property as their primary residence.

For Companies: Details on Property Taxes in Greece

Corporations owning real estate in Greece are subject to several property taxes.

These taxes are part of Greece’s comprehensive property tax system, which ensures that companies contribute to public revenues through their real estate holdings.

Exemptions and special conditions may apply depending on the use of the property and the activities of the company. As corporate lawyers in Greece, we can help you understand and optimize your company’s real estate tax obligations.

Unified Property Tax (ENFIA) for Legal Entities

€0.001 to €13 per square meter + 0.55% – The unified property tax in Greece also applies to legal entities. All legal entities, including corporations, associations and other organizations, that own real estate in Greece must pay ENFIA. The tax is due regardless of the size of the entity or the nature of its business.

The main tax for legal entities is calculated similarly to that for individuals, based on the location, area, age and other characteristics of the property. The rate typically ranges from €0.001 to €13 per square meter, depending on these factors.

The supplementary tax for legal entities is 0.55% of the objective value of the property. This tax is applied to the total value of the real estate owned by the entity, above a certain threshold, and is in addition to the main tax.

Special rates may apply under certain conditions, such as a reduced rate of 0.1% for properties used for commercial activities or 0.35% for properties owned by non-profit organizations.

Certain legal entities may be partially or totally exempt from ENFIA. These include charitable organizations, religious institutions and certain public utilities. The exemptions are granted based on the purpose of the entity and the use of the property.

Special Real Estate Tax (SRET)

15% – The Special Real Estate Tax (SRET) in Greece is a tax imposed on legal entities that own real estate. This tax aims to promote transparency in real estate ownership and prevent tax evasion by ensuring that the ultimate beneficial owners of real estate are disclosed.

The standard rate of SRET is 15% of the objective value of the property.

SRET is an annual tax. Legal entities must declare and pay the tax as part of their annual tax obligations. The exact payment schedule may vary, but is generally aligned with other annual tax filings.

The introduction of SRET reflects Greece’s efforts to increase transparency in the real estate sector and reduce opportunities for tax avoidance.

One of the main exemptions from SRET is available to entities that fully disclose their beneficial owners. By providing complete information about the individuals who ultimately control the company, the company can be exempted from this tax.

Entities whose gross income from active business activities (e.g., trade, industry, manufacturing) exceeds their passive income (e.g., rental income, dividends) may qualify for an exemption. The rationale is that such entities are primarily engaged in economic activities rather than holding real estate for passive income.

Capital Gains Tax for Legal Entities

24% – Capital gains tax in Greece is levied on gains from the sale of real estate. The standard rate of capital gains tax on real estate for legal entities in Greece is 24%. This rate applies to the net gain realized on the sale of the property, calculated as the difference between the sale price and the acquisition cost, adjusted for inflation and certain allowable expenses.

The tax is payable by the legal entity (such as a corporation, partnership or other business structure) that owns and sells the property. This includes both Greek and foreign entities with real estate holdings in Greece.

Capital gains tax is due in the fiscal year in which the sale of the property is completed. The gains must be reported in the annual corporate tax return, and the tax is usually paid along with other corporate taxes for that fiscal year.

Rental Income Tax for Legal Entities

24% – Legal entities that derive income from the rental of real estate are subject to rental income tax in Greece. This tax is levied on the gross income from the rental of real estate and is a component of the corporate tax system.

The rental income of legal entities is taxed at the corporate tax rate, which is 24%. This rate is uniformly applied to net income from rental activities.

The tax is calculated annually and paid as part of the corporate tax return. Legal entities must declare all rental income in their annual tax return, which is usually filed at the end of the fiscal year. The payment schedule is consistent with other corporate tax obligations.

Corporations may deduct allowable expenses related to the rental property, such as maintenance costs, property management fees, depreciation, and other operating expenses. These deductions help determine net taxable income and reduce the overall tax liability.

FAQ – Property tax in Greece

Do you pay tax on property in Greece?

Yes, property owners in Greece are required to pay taxes on their property.

The primary property tax in Greece is called the Unified Property Tax (ΕΝΦΙΑ, or ENFIA).

This tax is levied annually and consists of two components: a main tax, which is calculated based on the size, location, age, and other characteristics of the property, and a supplemental tax, which is levied on properties whose total value exceeds a certain threshold. This tax is applied to the total value of real estate owned by an individual.

In addition to ENFIA, other potential taxes and fees on real estate include transfer tax, capital gains tax, and inheritance tax.

How to calculate property taxes in Greece?

Determining how much tax you will pay on a property in Greece is a serious matter that requires careful consideration to take into account your specific circumstances.

For example, to calculate the Unified Real Estate Property Tax (ENFIA), you must take into account several factors that determine the total tax liability. The calculation includes both the main tax and the supplementary tax, if applicable.

The main tax is calculated based on the characteristics of the property, including:

• Zone rate (Τιμή Ζώνης): This rate varies depending on the location of the property and reflects the average market value per square meter in that area.
• Area: The total area of the property in square feet.
• Property age: Older properties may have a different rate than newer ones.
• Floor Factor: The level of the floor on which the property is located (higher floors may have a higher rate).
• Frontage Factor: If the property is on a main street, there may be an additional charge.
• Use of the property: Different rates apply depending on whether the property is residential, commercial, etc.

Each factor has a specific coefficient that must be applied according to official tables provided by the tax authorities.

Some properties may qualify for reductions or exemptions based on specific criteria (e.g., properties located in certain zones, properties used by large families, etc.).

For an accurate calculation of property tax, you would normally use an official online calculator provided by the Greek tax authorities or consult a tax professional who can take into account all specific factors and current regulations.

What is the property registration tax in Greece?

Property Registration Tax, also known as Property Transfer Tax, is a tax levied on the purchase of real estate. This tax is paid by the buyer at the time of transfer and is calculated on the basis of the declared value of the property.

The general rate of property transfer tax in Greece is 3% of the declared value of the property. This rate is applied uniformly throughout the country.

The tax is calculated on the higher of the declared purchase price or the objective value of the property (a value determined by the tax authorities based on various factors such as location, size and characteristics).

What is the ENFIA tax in Greece?

ENFIA (ΕΝΦΙΑ), or the Unified Real Estate Property Tax, is an annual property tax in Greece that applies to all properties in the country. It is a key component of the Greek tax system and serves as an important source of revenue for the government.

ENFIA consists of two main components: the main tax and the supplementary tax.

The Supplementary Tax is an additional tax that applies only to individuals who own real estate with a total value above a certain threshold. This tax is calculated on the total value of all real estate holdings above the threshold.

ENFIA is usually paid in several installments throughout the year. Property owners receive a detailed notice outlining their tax obligations, and payments can be made through various channels, including banks and online platforms.

Is there a yearly property tax in Greece?

Yes, Greece has an annual property tax known as the Uniform Real Estate Property Tax (ENFIA, or ΕΝΦΙΑ in Greek). This tax is levied on all properties in the country and is payable by property owners each year. ENFIA is a significant component of property-related costs in Greece and is an important consideration for anyone owning property in the country.

How to pay Greek property tax?

The Independent Authority for Public Revenue (AADE) issues ENFIA tax notices each year. Property owners can access their tax information online through the AADE website. The assessment includes details of the tax owed and the payment schedule.

You have several options for paying ENFIA:

• Online payment: Use online banking services offered by Greek banks. Most banks in Greece offer online payment options that allow you to pay your taxes directly from your bank account.
• Bank payment: You can pay at any bank branch in Greece. Bring a copy of the tax assessment and the payment code to the bank. Payment can be made in cash, by debit card or by wire transfer.
• Post office: Payments can also be made at post offices in Greece. Similar to bank payments, you will need the payment code and a copy of the tax assessment.
• Installments: ENFIA can usually be paid in monthly installments, usually up to five installments. The assessment will specify the number of installments and the due dates for each.
• Direct debit: You can set up a direct debit arrangement through your bank to have the tax amount automatically deducted from your account on the due dates.

After making the payment, make sure you receive a confirmation or receipt. If you pay online, you should receive an electronic confirmation. If you pay at a bank or post office, keep the receipt as proof of payment.

What is the pool tax in Greece?

In Greece, “pool tax” refers to the additional tax levied on properties that have swimming pools. The tax is part of the broader property tax system and is generally included in the calculation of the Uniform Property Tax (ENFIA).

Properties with swimming pools are considered to have a higher value and are therefore subject to a higher tax assessment. This is due to the perceived increase in luxury and amenities associated with the property.

The type of pool (e.g., in-ground vs. above-ground) and its specific characteristics may also play a role in the tax calculation. Larger pools may result in a greater increase in the property’s assessed value.

Properties in higher value zones (with higher “zone rates”) will generally see a greater impact from the addition of a pool.

Manage and Optimize your Property Tax Obligations in Greece

A Greek real estate lawyer can be an invaluable resource when it comes to property taxes in Greece.

At Leptokaridou Law Firm, we can help you structure transactions in a tax-efficient manner, potentially saving you money in the long run.

We provide strategic advice on tax planning related to real estate investments, including guidance on the tax implications of buying, selling or transferring property, as well as inheritance and gift taxes.

We can assist in accurately assessing the value of the property for tax purposes and advise on potential tax deductions, exemptions or reductions that may be available to you.

Since compliance with Greek tax laws is crucial to avoid fines and legal issues, we will help you gather and prepare the necessary documentation, such as proof of ownership, property value assessments and declarations, and assist with the accurate and timely filing of tax returns, including the required disclosures and payments.

In the event of disputes or problems with tax assessments, we can represent you as your real estate lawyers in dealings with the Greek tax authorities.

Contact the firm for comprehensive assistance in understanding, managing and optimizing your real estate tax obligations in Greece.