This part of the RSM Greece Real Estate Tax Guide, provides an overview of the tax implications in regards to acquiring real estate in Greece. Specifically, it focuses on the following matters:
- Direct purchase of real estate
- Indirect purchase of real estate
For more information on holding, selling and transferring Greek real estate please visit the relevant articles of the RSM Greece Real Estate Tax Guide, or contact our trusted advisors.
Direct Purchase of Real Estate
This section discusses the key tax implications of the direct purchase of real estate. First of all is discussed the impact for resident individuals and non-resident individuals. Thereafter is discussed the impact for resident companies and non-resident companies.
Resident Individuals
Transfer Taxes
Individuals who acquire Greek real estate are subject to transfer tax which is payable by the purchaser. The tax value (known as the objective value) of the real property is subject to transfer tax at the rate of 3%.
Value added tax
The supply of real estate is exempt from VAT, effective from 1 January 2024, for newly constructed buildings sold prior to their first occupation and will be subject to VAT. The applicable VAT rate is 24%.
Non-resident individuals
Non-resident individuals are treated in the same manner as resident individuals.
Resident companies
Transfer Taxes
The acquisition of Greek real estate is subject to transfer taxes. The tax (objective) value of the real property is taxed against at a rate of 3%. The transfer tax is payable by the purchaser and is capitalised with the cost of acquisition.
Value added tax
The supply of real estate is exempt from VAT. Effective from 1 January 2025 a new building is sold prior to its first occupation will be subject to VAT. The applicable VAT rate is 24%. If the supply of the immovable property is subject to VAT, the transfer is exempt from transfer tax.
Non-resident companies
Non-resident companies are treated in the same manner as resident companies, since Greek real estate is considered to give rise to a permanent establishment.
Indirect Purchase of Real Estate
This section discusses key tax implications of the indirect purchase of real estate (i.e. through purchasing shares in a company that owns real estate). First we consider the impact for resident individuals and non-resident individuals. Thereafter we consider the impact for resident companies and non-resident companies.
Resident individuals
Transfer taxes
The acquisition of shares of a real estate owning company is not subject to transfer tax.
Non-resident individuals
Non-resident individuals are treated in the same manner as resident individuals.
Resident companies
Transfer taxes
A share transfer is not subject to transfer taxes.
Fiscal unity
The notion of fiscal unity of companies is not available in Greece.
Non-resident companies
Non-resident companies are treated in the same manner as resident companies.