Buying Property in Greece: Taxes and Costs Foreign Buyers
Ktimatoemporiki Real Estate - 2025-09-19
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Buying Property in Greece: Taxes and Costs Foreign Buyers Must Know (2025)
Greece has become one of Europe’s most attractive destinations for international property investors. Whether you are buying a holiday villa on an island, a city apartment in Athens or a long-term rental investment, understanding the Greek tax landscape is essential.
This guide gathers the most important information from leading tax sources and adds extra insight—so you can plan your purchase with confidence.
1. Taxes at the Moment of Purchase
When you acquire property in Greece you will pay either Transfer Tax or VAT, depending on the type of property:
• Real Estate Transfer Tax (FMA) – For resale properties and plots of land not subject to VAT, the buyer pays a 3% tax on the “objective value” of the property (the official value set by the tax authorities). On top of this comes a small municipal surcharge of about 3% of the tax amount itself, so the effective rate is about 3.09%. If the official value is higher than the agreed purchase price, the higher value is used.
• VAT on new builds – Brand-new properties sold directly by a developer normally carry 24% VAT on the purchase price. The Greek government has periodically introduced temporary exemptions for new construction; check the current status before you buy, as this can dramatically change the total cost.
Other one-off costs (not strictly taxes but unavoidable) include the notary’s fee, land registry or cadastre registration, legal fees and the agent’s commission. Altogether you should budget roughly 8–10% above the purchase price for closing costs.
2. Annual Property Taxes
• ENFIA – Uniform Real Estate Ownership Tax: This is the core annual property tax. It applies to all types of property—homes, plots, usufruct rights—owned by residents or non-residents alike.
– The tax is calculated on the official “objective value,” adjusted for location, age of the building, floor level and other factors.
– For undeveloped land the rate is much lower.
– A recent law grants a 20% reduction in ENFIA for insured properties with a taxable value up to €500,000 (and a 10% reduction above that) provided the property is insured against fire, earthquake and flooding for at least three months of the previous year.
– Payment flexibility: ENFIA can be paid in 12 monthly instalments each year.
– Heritage properties: Historic buildings with a taxable value up to €400,000 are fully exempt from ENFIA.
• TAP – Municipal Property Duty: A small local levy collected through the electricity bill, based on the objective value and square metres of the property.
• Other municipal charges such as waste-collection and street-lighting fees are also added to the electricity bill and vary by municipality.
3. Taxes on Rental Income
If you let the property, rental income is taxed in Greece even if you are a non-resident.
– Up to €12,000 annual rental income: 15% tax
– €12,001 – €35,000: 35%
– Over €35,000: 45%
Short-term (Airbnb-type) rentals must be registered with the Independent Authority for Public Revenue (AADE) and are subject to the same income tax rates. Local tourism levies may also apply.
4. Capital Gains Tax
Greece has legislated a 15% capital gains tax on profits from selling property, but this tax is currently suspended until at least 31 December 2026. Investors who sell before the suspension ends can realise gains without paying Greek capital gains tax.
5. Inheritance and Gift Taxes
Real estate located in Greece is subject to inheritance or gift tax even if the owner or heir lives abroad.
• Close relatives (spouse, children, parents) benefit from generous allowances—currently €150,000 tax-free for inheritances and €800,000 tax-free for gifts/parental transfers.
• Beyond these thresholds, progressive rates apply depending on the degree of kinship.
Properties situated outside Greece are not subject to Greek inheritance tax.
6. Special Tax Regimes for International Buyers
Greece offers attractive tax regimes to encourage foreign investment:
• Non-dom / High Net Worth Individual regime: If you transfer your tax residency to Greece and invest at least €500,000 within three years, you can opt for a flat annual tax of €100,000 on all foreign-source income, regardless of the amount.
• Golden Visa programme: By purchasing property with a minimum investment of €250,000 (or €500,000 in prime areas such as central Athens and the Athens Riviera) you and your immediate family can obtain a five-year renewable residence permit. Owning the property triggers the same Greek property taxes as above; there is no extra “foreign buyer” surcharge.
7. Practical Tips for Foreign Investors
• Always obtain a Greek Tax Number (AFM) and open a Greek bank account before signing contracts.
• Use a local lawyer and a certified civil engineer to check titles, building permits and any hidden liabilities.
• Insure your property—besides protecting your investment, it now brings a reduction in ENFIA.
• Plan your exit: with capital gains tax suspended until end-2026, there is a window of opportunity if you intend to resell.
• Check double-tax treaties between Greece and your home country to avoid paying tax twice on the same income
Key Takeaway – Property Taxes in Greece 2025
Greece offers not only a Mediterranean lifestyle and the Golden Visa route to EU residency but also a clear and competitive tax framework for property owners. Understanding the combination of one-off purchase taxes, annual property duties, and the special incentives for foreigners allows you to budget accurately and seize the opportunities the Greek real estate market provides in 2025 and beyond.
Greece has become one of Europe’s most attractive destinations for international property investors. Whether you are buying a holiday villa on an island, a city apartment in Athens or a long-term rental investment, understanding the Greek tax landscape is essential.
This guide gathers the most important information from leading tax sources and adds extra insight—so you can plan your purchase with confidence.
1. Taxes at the Moment of Purchase
When you acquire property in Greece you will pay either Transfer Tax or VAT, depending on the type of property:
• Real Estate Transfer Tax (FMA) – For resale properties and plots of land not subject to VAT, the buyer pays a 3% tax on the “objective value” of the property (the official value set by the tax authorities). On top of this comes a small municipal surcharge of about 3% of the tax amount itself, so the effective rate is about 3.09%. If the official value is higher than the agreed purchase price, the higher value is used.
• VAT on new builds – Brand-new properties sold directly by a developer normally carry 24% VAT on the purchase price. The Greek government has periodically introduced temporary exemptions for new construction; check the current status before you buy, as this can dramatically change the total cost.
Other one-off costs (not strictly taxes but unavoidable) include the notary’s fee, land registry or cadastre registration, legal fees and the agent’s commission. Altogether you should budget roughly 8–10% above the purchase price for closing costs.
2. Annual Property Taxes
• ENFIA – Uniform Real Estate Ownership Tax: This is the core annual property tax. It applies to all types of property—homes, plots, usufruct rights—owned by residents or non-residents alike.
– The tax is calculated on the official “objective value,” adjusted for location, age of the building, floor level and other factors.
– For undeveloped land the rate is much lower.
– A recent law grants a 20% reduction in ENFIA for insured properties with a taxable value up to €500,000 (and a 10% reduction above that) provided the property is insured against fire, earthquake and flooding for at least three months of the previous year.
– Payment flexibility: ENFIA can be paid in 12 monthly instalments each year.
– Heritage properties: Historic buildings with a taxable value up to €400,000 are fully exempt from ENFIA.
• TAP – Municipal Property Duty: A small local levy collected through the electricity bill, based on the objective value and square metres of the property.
• Other municipal charges such as waste-collection and street-lighting fees are also added to the electricity bill and vary by municipality.
3. Taxes on Rental Income
If you let the property, rental income is taxed in Greece even if you are a non-resident.
– Up to €12,000 annual rental income: 15% tax
– €12,001 – €35,000: 35%
– Over €35,000: 45%
Short-term (Airbnb-type) rentals must be registered with the Independent Authority for Public Revenue (AADE) and are subject to the same income tax rates. Local tourism levies may also apply.
4. Capital Gains Tax
Greece has legislated a 15% capital gains tax on profits from selling property, but this tax is currently suspended until at least 31 December 2026. Investors who sell before the suspension ends can realise gains without paying Greek capital gains tax.
5. Inheritance and Gift Taxes
Real estate located in Greece is subject to inheritance or gift tax even if the owner or heir lives abroad.
• Close relatives (spouse, children, parents) benefit from generous allowances—currently €150,000 tax-free for inheritances and €800,000 tax-free for gifts/parental transfers.
• Beyond these thresholds, progressive rates apply depending on the degree of kinship.
Properties situated outside Greece are not subject to Greek inheritance tax.
6. Special Tax Regimes for International Buyers
Greece offers attractive tax regimes to encourage foreign investment:
• Non-dom / High Net Worth Individual regime: If you transfer your tax residency to Greece and invest at least €500,000 within three years, you can opt for a flat annual tax of €100,000 on all foreign-source income, regardless of the amount.
• Golden Visa programme: By purchasing property with a minimum investment of €250,000 (or €500,000 in prime areas such as central Athens and the Athens Riviera) you and your immediate family can obtain a five-year renewable residence permit. Owning the property triggers the same Greek property taxes as above; there is no extra “foreign buyer” surcharge.
7. Practical Tips for Foreign Investors
• Always obtain a Greek Tax Number (AFM) and open a Greek bank account before signing contracts.
• Use a local lawyer and a certified civil engineer to check titles, building permits and any hidden liabilities.
• Insure your property—besides protecting your investment, it now brings a reduction in ENFIA.
• Plan your exit: with capital gains tax suspended until end-2026, there is a window of opportunity if you intend to resell.
• Check double-tax treaties between Greece and your home country to avoid paying tax twice on the same income
Key Takeaway – Property Taxes in Greece 2025
Greece offers not only a Mediterranean lifestyle and the Golden Visa route to EU residency but also a clear and competitive tax framework for property owners. Understanding the combination of one-off purchase taxes, annual property duties, and the special incentives for foreigners allows you to budget accurately and seize the opportunities the Greek real estate market provides in 2025 and beyond.
