You are about to buy your dream home in Greece – the one with a breathtaking sea view. Before you finalize the buying decision, it is important to know what taxes you may encounter when buying real estate in Greece.
When buying a house in Greece, there are a few tax issues to consider that may affect your budget. Prices you see on real estate agent websites usually do not include taxes. Here is an overview of the taxes you may have to deal with:
When purchasing a house in Greece, you pay transfer tax, also known as FMA. This tax is 3.09% of the purchase price and is paid by the buyer. The transfer tax is calculated based on the purchase price or the “objective tax value” of the property, whichever is higher. The objective tax value, determined by the tax authorities based on objective criteria, is rarely above the market price in rural areas.
New construction homes are usually subject to a VAT rate of 24%. This is charged by construction companies upon transfer to the first owner. Good to know: homes on our website are shown with VAT included, if applicable.
However, there is a temporary VAT exemption for new construction projects that applies until the end of 2024. If you buy a home in a project that qualifies for this scheme, you will pay 3.09% transfer tax instead of 24% VAT. This is an incentive measure by the Greek government to promote the sale of new-build homes.
Currently, the capital gains tax in Greece is suspended until 2024. This means that as a seller, you do not pay tax on the profit from the sale of your property. Note that if you are a non-Greek resident, you may have to pay tax on your gain in your home country. However, Greece has tax treaties with many countries to avoid double taxation, so it is advisable to consult a tax advisor in your home country.
TAP, a municipal tax, is the least intrusive tax and usually amounts to only a few euros per year. This tax is collected through your electricity bill.
It is wise to work with an accountant who is familiar with the local tax system. This can save you a lot of time when doing tax returns in Greece. Expect an accountant to cost you about 150-200 euros per year to take care of your tax affairs.
