Property Taxes in Greece for Foreign Buyers: A Comprehensive Guide

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Table of Contents

• Introduction to the Greek Property Market
• Greek Property Taxation Structure
  • Purchase-Related Taxes
  • Annual Ownership Taxes
• Regional Tax Variations Across Greece
• Tax Exemptions and Incentives
• Case Studies: Real Tax Scenarios
• Golden Visa Program and Tax Implications
• Practical Tips for Tax Optimization
• Future Outlook: Greek Property Taxation
• Frequently Asked Questions

Introduction to the Greek Property Market

Considering a sun-drenched villa overlooking the Aegean or a charming apartment in Athens? You’re not alone. Greece’s property market has experienced a remarkable renaissance following years of economic turbulence, with foreign investment playing a pivotal role in this revival.

Before you dive into searching for your perfect greek property for sale, understanding the tax landscape is essential. Unlike straightforward property purchases in many countries, Greece’s tax system contains nuances that can significantly impact your investment strategy.

According to the Bank of Greece, foreign direct investment in Greek real estate has increased by 34.7% since 2018, with buyers from Germany, the UK, and increasingly China and Middle Eastern countries leading the charge. This surge has prompted the Greek government to refine its property tax framework—sometimes creating opportunities, other times adding complexity.

Let’s cut through that complexity together, shall we?

Greek Property Taxation Structure

Greece’s property tax system operates on multiple levels, affecting buyers at the purchase stage, during ownership, and upon eventual sale or transfer. Let’s break down each phase with precision.

Purchase-Related Taxes

When you’re acquiring property in Greece, the initial tax hurdle is the Property Transfer Tax (Φόρος Μεταβίβασης Ακινήτων). Here’s what you need to know:

• Standard rate: 3.09% of the property’s value (3% base rate plus 0.09% municipal tax)
• VAT exception: For newly built properties (first sale by construction company) completed after January 1, 2006, a 24% VAT applies instead of transfer tax
• Value assessment: Based on either the declared purchase price or the “objective value” (government-assessed value), whichever is higher

But here’s a critical insight many foreign buyers miss: The objective value system underwent significant reform in 2018 and again in 2021, bringing assessed values closer to market rates. This means the days of tax calculations based on artificially low government valuations are largely over.

Beyond the transfer tax, you’ll encounter:

• Notary fees: 0.8-1% of property value
• Legal fees: 0.5-1% of property value
• Land registry fees: Approximately 0.5% of property value
• Real estate agent commission: 2-2.5% (typically split between buyer and seller)

Consider this real scenario: For a €300,000 property purchase in Athens, total acquisition costs typically range between €15,000-€20,000 beyond the property price itself—representing about 5-7% of the total investment.

Annual Ownership Taxes

Once you’ve secured your Greek property, recurring taxation becomes your primary consideration:

ENFIA (Unified Property Tax)
Introduced in 2014 and reformed several times since, ENFIA is the primary annual property tax in Greece. It comprises:

• Main tax: Calculated based on property size, location, age, and usage
• Supplementary tax: Additional tax on total property holdings exceeding €300,000

The ENFIA calculation reflects a property’s characteristics through coefficients that consider:

• Zone price (location value)
• Age of the building
• Floor (for apartments)
• Façade (street frontage)
• Usage type (residential, commercial, etc.)

A critical development for foreign investors: The Greek government reduced ENFIA by an average of 22% in 2022, making property ownership considerably more affordable. For a typical two-bedroom apartment in central Athens valued at €200,000, the annual ENFIA has decreased from approximately €600 to around €450.

Municipal Taxes
These are collected through utility bills and typically amount to 0.025-0.035% of the property’s taxable value annually.

Income Tax on Rental Income
If you’re planning to rent your Greek property, income tax applies on a progressive scale:

• Income up to €12,000: 15%
• €12,001-€35,000: 35%
• Above €35,000: 45%

Short-term rentals (like Airbnb) are taxed on the same scale but may have additional municipal requirements.

Regional Tax Variations Across Greece

Not all Greek regions carry the same tax burden. Strategic property location can significantly impact your tax obligations.

Let me highlight a critical insight: While Cycladic islands carry higher base tax rates, their superior rental yields (often 5-7% annually compared to 3-4% in mainland areas) frequently offset the increased tax burden. This creates a counterintuitive situation where higher-taxed properties may deliver better net returns.

Tax Exemptions and Incentives

Greece offers several exemptions that savvy foreign investors can leverage:

• Primary residence exemption: Reduced ENFIA for properties serving as primary residence (applicable if you become a tax resident)
• Heritage buildings: Up to 100% ENFIA exemption for officially designated historical or preserved buildings
• Energy efficiency incentives: Tax deductions of up to €16,000 for qualifying energy upgrades under the “Exoikonomisi” program
• Small island properties: 50% ENFIA reduction for properties on islands with populations under 3,100

Here’s a data visualization comparing potential tax savings through different exemptions:

A particularly valuable strategy: Combining energy efficiency upgrades with heritage property investment can potentially eliminate up to 100% of ENFIA tax while also reducing income tax liability through deductions.

Case Studies: Real Tax Scenarios

Let’s examine two real-world examples to illustrate how these taxes play out in practice:

Case Study 1: Urban Investment Apartment

Property: 85m² two-bedroom apartment in Koukaki, Athens
Purchase price: €220,000
Purchase taxes and fees:

• Transfer tax: €6,798 (3.09% of purchase price)
• Notary fees: €1,980 (0.9% of purchase price)
• Legal fees: €1,320 (0.6% of purchase price)
• Registration fees: €1,100 (0.5% of purchase price)
• Agent commission: €2,750 (1.25% – buyer’s portion)
• Total acquisition costs: €13,948 (6.34% of purchase price)

Annual ownership costs:

• ENFIA: €420 per year
• Municipal taxes: €65 per year
• Total annual holding tax: €485

Rental income scenario:
€900/month rental income (€10,800 annually)
Income tax: €1,620 (15% bracket)
Net annual return after taxes: €8,695 (3.95% yield on investment)

Case Study 2: Island Holiday Home

Property: 120m² villa on Paros with sea view
Purchase price: €380,000
Purchase taxes and fees:

• Transfer tax: €11,742 (3.09% of purchase price)
• Notary fees: €3,420 (0.9% of purchase price)
• Legal fees: €2,280 (0.6% of purchase price)
• Registration fees: €1,900 (0.5% of purchase price)
• Agent commission: €4,750 (1.25% – buyer’s portion)
• Total acquisition costs: €24,092 (6.34% of purchase price)

Annual ownership costs:

• ENFIA: €980 per year
• Municipal taxes: €133 per year
• Total annual holding tax: €1,113

Seasonal rental scenario:
€2,200/week during 16-week high season (€35,200 annually)
Income tax: €5,280 (15% bracket) + €6,720 (on portion taxed at 35%)
Net annual return after taxes: €22,087 (5.81% yield on investment)

The key takeaway? While island properties carry higher absolute tax costs, their superior income potential often delivers stronger net returns—though this calculation shifts dramatically if the property remains vacant during off-seasons.

Golden Visa Program and Tax Implications

Greece’s Golden Visa program has proven exceptionally popular, offering residence permits to non-EU investors purchasing property worth €250,000 or more. However, the tax implications deserve careful consideration.

Contrary to popular belief, obtaining a Greek Golden Visa doesn’t automatically make you a Greek tax resident. Tax residency typically requires spending over 183 days annually in Greece or demonstrating that your vital interests (financial and social) center on Greece.

For Golden Visa investors, this creates a potentially advantageous situation:

• You can maintain your existing tax residency while holding Greek property
• You’re taxed in Greece only on income generated within Greece (primarily rental income)
• You avoid Greek taxation on worldwide income unless you become a tax resident

However, a significant development occurred in 2020 with the introduction of the Non-Dom program—offering a flat tax rate of €100,000 annually on global income for wealthy individuals who transfer tax residency to Greece. This can be combined with the Golden Visa program for comprehensive tax planning.

As Maria Kotanidis, tax attorney at Athens-based firm Taxworks, explains: “The Golden Visa program should be viewed as an immigration tool rather than a tax optimization strategy. However, when combined with careful planning around tax residency status, it creates opportunities for legitimately minimizing tax exposure while securing European residence rights.”

Practical Tips for Tax Optimization

Based on expert consultation with Greek tax advisors, here are strategic approaches to optimize your tax position:

1. Timing property transfer strategically: In some cases, delaying property purchase until January can push ENFIA payment obligation to the following year
2. Corporate structure consideration: For larger investments or multiple properties, establishing a Greek company (typically EPE or IKE) can potentially reduce income tax rates to 22% on rental income
3. Renovation tax benefits: Document all property improvements—Greece offers deductions for major renovations that can offset future capital gains
4. Leveraging double taxation treaties: If your home country has a double taxation treaty with Greece (most EU countries, the US, and many others do), ensure you’re not paying taxes twice on the same income
5. Family property distribution: Distributing property ownership among family members can reduce supplementary ENFIA tax liability by keeping individual property portfolios below the €300,000 threshold

Here’s a practical example: An investor from Germany purchased three separate properties in Greece (total value €650,000) instead of one luxury villa. By distributing these purchases among family members, they avoided the supplementary ENFIA tax that would have added approximately €2,500 annually to their tax bill.

Remember: The line between tax optimization and tax evasion is clear and non-negotiable. Always work with licensed professionals familiar with both Greek tax law and your home country’s requirements.

Navigating Tomorrow’s Greek Property Tax Landscape

Greek property taxation isn’t static—it’s evolving in response to both domestic economic priorities and international pressures. Here’s what informed observers anticipate:

• Continued ENFIA adjustments: The government has signaled further potential reductions of 5-10% in ENFIA taxes over the next three years, pending economic conditions
• Digital tax administration: Greece’s rapid digitization of tax processes is streamlining compliance but also improving enforcement capabilities
• Golden Visa thresholds: The minimum investment threshold for the Golden Visa will likely increase for properties in prime areas like central Athens, the Athenian Riviera, Thessaloniki, Mykonos, and Santorini
• Green property incentives: Tax benefits for energy-efficient properties are expected to expand significantly as Greece pursues EU climate targets

As Yannis Ploumis, CEO of Ploumis Sotiropoulos Real Estate, notes: “The predictability of Greece’s property tax system has dramatically improved. While further reforms are inevitable, they’re increasingly designed to incentivize sustainable development rather than simply maximize revenue. Foreign investors who align with these priorities will find the most favorable tax treatment.”

For foreign buyers, this evolving landscape presents both challenges and opportunities. The investors most likely to benefit will be those who:

1. Establish relationships with local tax experts who can provide timely updates
2. Remain flexible in their investment approach
3. Consider the long-term tax implications rather than focusing solely on initial purchase costs
4. Align investments with Greece’s developing priorities in sustainable tourism and urban renewal

Are you positioned to adapt as Greece’s property tax landscape continues to evolve?

Frequently Asked Questions

How does Greek inheritance tax affect foreign property owners?

Greek inheritance tax applies to all properties located in Greece, regardless of the owner’s nationality. The rates are progressive, ranging from 1-10% for close relatives (children, spouse, parents) up to 20-40% for unrelated beneficiaries. Each beneficiary receives a tax-free allowance (€150,000 for spouses and children). Importantly, if both the deceased and heirs are non-residents who have lived outside Greece for at least 10 years, Greek inheritance tax may be reduced or eliminated for non-real estate assets—but property always remains taxable in Greece.

Can I reduce my ENFIA tax liability through property renovations?

Yes, strategic renovations can reduce ENFIA in several ways. First, energy efficiency improvements that result in a better Energy Performance Certificate (EPC) rating can qualify for ENFIA reductions of 5-25% depending on the improvement level. Second, if you’re renovating a property classified as “incomplete” on the tax registry, completing it with proper permits can sometimes result in more favorable tax coefficients. Finally, for very old properties, substantial renovation can reset the age coefficient used in ENFIA calculations. Document all improvements through proper building permits and updated property declarations.

How are capital gains taxed when selling Greek property?

Currently, capital gains tax on property in Greece is technically 15%, but it has been suspended until December 31, 2023. When implemented, it will apply to the difference between purchase and sale prices, adjusted for inflation. Properties acquired before January 1, 1995, will be exempt. Additionally, if you reinvest the proceeds in another primary residence within two years, you may defer the tax. Foreign sellers should note that their home country may also tax these gains, though double taxation treaties typically prevent paying full tax in both jurisdictions.

Article reviewed by Mehmet Yılmaz, Business Transformation Leader | Operational Excellence Architect, on April 29, 2025