Property Purchase Taxes
Transfer Tax
When purchasing property in Greece, a transfer tax of 3.09% is applied to the property’s “Objective Value,” which is based on factors like size, location, and specifications. If the Objective Value is higher than the purchase price, the tax is based on the Objective Value. For large investments, share deals can avoid this tax. Recently, VAT for new properties (those with planning permission after January 2006) has been exempted for three years starting from 2019.
Rental Tax
Rental income is taxed at progressive rates for individuals:
- 15% on income up to €12,000
- 35% on income between €12,000 and €35,000
- 45% on income over €35,000
Additionally, a solidarity contribution of up to 10% may apply. Corporations are taxed at 29%, plus a 15% dividend withholding tax. EU-based companies may benefit from exemptions on dividend withholding tax.
Capital Gains Tax
Selling property held for less than five years incurs a 15% capital gains tax on the profit. Properties held for over five years are exempt from this tax. Foreign residents may be subject to capital gains tax in their home countries.
Annual Property Taxes (ENFIA)
ENFIA is an annual tax on property ownership.
- It includes a primary tax based on factors like location and size
- And a secondary tax on property values over €200,000
For legal entities, the rate is 0.55% of the total property value.
Municipal Property Tax (TAP)
TAP is charged at 0.025% to 0.035% of the property’s Objective Value and is usually included in electricity bills. If billed to a tenant, the amount is deducted from the rent. Additional municipal taxes may apply based on local regulations.
Special Tax on Property (SRET)
Companies owning real estate in Greece face a 15% tax on the Objective Value unless exempt. Exemptions include companies listed on exchanges, those involved in specific activities, and entities with charitable or educational purposes.
Financial and Payment Options
When purchasing real estate in Greece, payments are usually made via bank transfers or certified checks. Buyers typically need to provide a 10% deposit to secure the property, with the remaining amount due upon completion of the sale. Financing options are available through Greek banks or international lenders, though transactions are generally conducted in euros. It is crucial to be aware of all financial aspects, including currency conversion if applicable.
Exit Strategy
When planning to exit your real estate investment in Greece, consider options such as selling the property on the open market or transferring it to another investor. Evaluate market conditions, potential capital gains taxes, and the impact on your residency status before making a decision.
Comparing Citizenship by Investment Countries
Similar Residence by Investment Programs
How can Migrate World help you get residency by investment through real estate?
Migrate World offers expert assistance in navigating the residency by investment process in Greece. We provide support in selecting the right property, handling legal and regulatory requirements, and managing the entire application process to ensure a smooth and successful investment experience.
List of Countries offering Residency by Investment through Real Estate
| Anguilla | Brazil | Cambodia | Cayman Islands | Curaçao |
| Cyprus | Greece | Malta | Namibia | Portugal |
| Spain | Turks and Caicos Islands |
Frequently Asked Questions
Can foreigners buy property in Greece?
Yes, non-residents can buy property in Greece. The country’s property ownership regulations are favorable to foreigners, making it a sought-after location for those looking to invest in real estate or acquire a vacation home.
Where in Greece is the cheapest to live?
Thessaloniki is among the most affordable cities in Greece, providing a high standard of living for expats on a budget. The cost of living in Thessaloniki is lower compared to major cities like Athens and is competitive with other European cities.
What is the 7-year law in Greece?
Under the Greek Golden Visa program, you can apply for Greek citizenship after holding a residence permit for seven consecutive years. This process allows you to obtain citizenship along with all the associated rights and benefits.
Can the investment permit be considered a work permit?
No, the Golden Visa does not grant the right to work in Greece. It provides residency for the purpose of living in Greece, but it does not include work rights.
Are there any restrictions on the acquisition of real estate in Greece by foreign buyers?
Non-EU nationals face restrictions when buying property in certain border areas of Greece, including parts of the eastern Aegean, Dodecanese, Thrace, and northern regions (per Article 24, Law 1892/1990). However, these restrictions can be lifted by submitting a special request that explains the property's intended use. Approval is granted by the Ministry of National Defence through a local administrative committee.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
Opening a bank account is not mandatory but is recommended as it simplifies property transactions and tax processes. Accounts can be opened either in person or through a power of attorney, and the applicant must provide documents such as proof of tax residency, address, and source of funds.
What additional expenses will the real estate transaction incur?
Beyond the property’s purchase price, buyers should expect additional costs tied to the property's assessed tax value. These include notary and land registry fees, property transfer tax, and real estate agency commissions (if applicable). Travel and accommodation costs may also apply when inspecting properties outside Athens.
What kind of returns can be expected from property investment in Greece?
Rental properties in Greece are generally easy to lease, offering owners a steady return. After expenses and taxes, annual net yields typically range between 4–5%. Central Athens tends to offer slightly higher returns compared to areas outside the city center.
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