Navigating Greek Property Taxes: A Comprehensive Guide for International Buyers

Reading time: 12 minutes

Table of Contents

• Introduction to Greek Property Taxation
• Purchase Taxes and Fees
• Annual Property Ownership Taxes
• Capital Gains and Income Taxes
• Regional Variations in Greek Property Taxation
• Tax Exemptions and Reduction Strategies
• Real-World Case Studies
• Your Greek Property Investment Roadmap
• Frequently Asked Questions

Introduction to Greek Property Taxation

Thinking about purchasing that dream Mediterranean villa or a chic real estate athens apartment? While Greece offers stunning landscapes and rich cultural experiences, navigating its property tax system can feel like deciphering ancient Greek tablets without the right guidance.

The Greek property tax framework underwent significant reforms following the economic crisis of 2009-2018, creating a more structured but complex system. For international investors, understanding these fiscal obligations isn’t just about compliance—it’s about protecting your investment and maximizing returns.

Here’s the straight talk: Greek property taxes might seem overwhelming at first glance, but with strategic planning, they’re entirely manageable. Many buyers focus exclusively on purchase price while overlooking the ongoing tax implications that can significantly impact the total cost of ownership.

In this guide, we’ll break down each tax and fee you’ll encounter—from the moment you sign the preliminary agreement to yearly ownership costs and eventual property sale. We’ll also explore regional variations and strategic approaches to optimize your tax position legally and effectively.

Purchase Taxes and Fees

The journey of property acquisition in Greece comes with several fiscal checkpoints. Let’s examine each tax and fee you’ll encounter during the purchase process:

Property Transfer Tax (FMA)

The Property Transfer Tax (Foros Metavivasis Akinitou or FMA) is your primary tax consideration when purchasing Greek real estate. Since January 2022, this tax stands at 3% of the property’s tax value for all properties, regardless of whether they’re newly built or resale properties.

Important note: The tax value is determined by the Greek tax authorities and may differ from the actual purchase price. In most cases, the tax value is lower than market value, but recent reforms have narrowed this gap considerably.

Quick scenario: Imagine purchasing a villa in Santorini with a tax value of €300,000. Your transfer tax would amount to €9,000 (3% of €300,000), payable before the final deed transfer.

Value Added Tax (VAT) on New Properties

For newly built properties (constructed under building permits issued after January 1, 2006), a 24% VAT applies instead of the transfer tax—but only if purchased directly from the developer or construction company as a first sale. This significant tax makes new developments considerably more expensive, though there are suspension provisions in place until December 31, 2024, to stimulate the property market.

Pro tip: If you’re considering a new property, inquire whether the developer has already paid the VAT or if it will be added to your purchase price. This seemingly small detail can drastically impact your budget planning.

Legal and Notary Fees

Property transactions in Greece require a notary public to draft and execute the final purchase deed. Notary fees typically range from 0.8% to 1.2% of the property’s value, decreasing incrementally for higher-value properties.

Legal fees for attorney representation (mandatory for foreign buyers) generally range from 0.5% to 1% of the property value. Experienced attorneys may charge higher rates but offer valuable guidance through complex legal and tax landscapes.

Registration and Stamp Duties

Once the sale is complete, the property must be registered at the local Land Registry (Ypothikofilakeio) or Cadastre Office (Ktimatologio). Registration fees typically range from 0.475% to 0.575% of the property’s value.

Additional stamp duties, typically around 0.5%, may apply to certain transaction aspects.

Annual Property Ownership Taxes

Once you’ve acquired your Greek property, recurring annual taxes become part of your ownership experience. Understanding these ongoing obligations is crucial for accurate long-term financial planning.

Unified Property Tax (ENFIA)

The most significant annual tax is ENFIA (Eniaios Foros Idiokthsias Akiniton), introduced in 2014 and subsequently adjusted several times. ENFIA consists of two components:

1. Main tax: Calculated based on property size, location, age, usage, and other factors
2. Supplementary tax: Applied to properties with a cumulative tax value exceeding €300,000

Recent reforms have reduced ENFIA rates by an average of 30%, providing some relief to property owners. The tax is calculated annually and can be paid in up to 10 monthly installments.

Real-world example: Maria, a British citizen, purchased a 120m² apartment in the Plaka neighborhood of Athens with a tax value of €280,000. Her annual ENFIA amounts to approximately €560. Meanwhile, Andreas from Germany bought a 200m² villa in Mykonos with a tax value of €650,000, resulting in an ENFIA of approximately €3,200 (including the supplementary tax component).

Municipal Taxes and Fees

Local municipalities levy additional property taxes, typically collected through electricity bills. These include:

• TAP (Telos Akinitis Periousias): Municipal property tax ranging from 0.025% to 0.035% of the property value
• Municipal fees for cleaning and lighting: Based on property size, location, and municipality rates
• Special fee for buildings with electricity: A small percentage based on property size

While individually modest, these fees collectively add up and should be factored into your annual budget.

Capital Gains and Income Taxes

If you’re purchasing property as an investment or considering future resale, understanding capital gains and rental income taxation is essential.

Capital Gains Tax

Capital gains tax on property sales has been suspended until December 31, 2024. When reinstated, it will apply at a rate of 15% on the difference between the purchase and sale prices, with adjustments for inflation and property improvements.

Properties acquired before January 1, 1995, are permanently exempt from capital gains tax, making older properties potentially more attractive for tax planning purposes.

Rental Income Taxation

If you plan to rent your Greek property, rental income is taxed at progressive rates:

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

A solidarity tax surcharge of 2.2% to 10% may apply to annual income exceeding €12,000, though this has been temporarily suspended until 2024.

Strategic insight: Many legitimate expenses can be deducted from rental income, including property management fees, maintenance costs, and insurance premiums. Proper documentation and working with a tax professional can significantly reduce your taxable rental income.

Regional Variations in Greek Property Taxation

While the primary tax framework applies nationwide, regional variations can significantly impact your total tax burden. Property zones are categorized according to objective values, which affect both purchase taxes and annual ENFIA calculations.

Island vs. Mainland Property Taxation

Popular island destinations like Mykonos, Santorini, and Rhodes generally have higher objective values, resulting in higher property taxes. However, some islands offer tax incentives for permanent residents or for properties in less developed areas.

Athens and Thessaloniki, the largest urban centers, have highly variable tax zones—from premium districts with substantial tax burdens to emerging neighborhoods with more modest tax obligations.

Case study: Thomas from Sweden purchased identical 100m² apartments in both Kolonaki (central Athens) and a developing suburb of Thessaloniki. Despite paying similar purchase prices, his annual ENFIA for the Athens property is nearly twice that of the Thessaloniki property due to the objective value differential between these locations.

Urban vs. Rural Property Considerations

Rural properties typically have lower objective values and correspondingly lower tax burdens. However, they may face additional taxes related to agricultural land use or lack established tax values, potentially complicating the purchase process.

Urban properties benefit from clearer tax frameworks and established objective values but generally face higher tax rates and supplementary taxes, especially in premium locations.

Tax Exemptions and Reduction Strategies

Several legitimate strategies can help minimize your Greek property tax burden while maintaining full compliance with tax regulations.

Primary Residence Exemptions

Greek residents (including qualifying foreign nationals) enjoy significant ENFIA reductions for their primary residence:

• 100% exemption for properties worth up to €60,000 if certain income criteria are met
• Partial reductions ranging from 20% to 50% based on property value and family status
• Additional reductions for families with three or more children

Strategic opportunity: If you’re planning to relocate to Greece, establishing tax residency can provide substantial property tax benefits, especially when combined with programs like the Non-Dom Tax Regime or the Greek Golden Visa.

Energy Efficiency Upgrades

Properties with high energy efficiency ratings can qualify for ENFIA reductions of up to 25%. Investments in improving your property’s energy performance not only reduce ongoing utility costs but can also lower your annual tax burden.

The “Exoikonomisi” program periodically offers subsidies for energy retrofitting projects, potentially covering 40-70% of improvement costs while simultaneously reducing your property taxes.

Real-World Case Studies

Case Study 1: Holiday Home Investment

John and Sarah from the UK purchased a €250,000 vacation home in Crete. Their initial tax expenses included:

• Property Transfer Tax: €7,500 (3% of tax value)
• Notary and legal fees: €5,000
• Registration costs: €1,300

Their annual tax obligations include:

• ENFIA: €520 annually
• Municipal taxes: €380 annually

By renting the property during peak tourist season (May-September), they generate €15,000 in annual income, resulting in approximately €2,250 in income tax. Their property manager helps document legitimate expenses, reducing their taxable rental income by nearly 30%.

Case Study 2: Golden Visa Investment

Zhang Wei from China invested €500,000 in an Athenian apartment to qualify for Greece’s Golden Visa program. His tax journey included:

• Initial purchase taxes: €15,000 (transfer tax) + €8,500 (legal and registration fees)
• Annual ENFIA: €1,850
• Municipal taxes: €650 annually

As a non-resident spending less than 183 days annually in Greece, Wei is only taxed on Greek-source income. By structuring his rental business carefully and maintaining his tax residence in China, he optimizes his global tax position while enjoying the benefits of European residence through the Golden Visa program.

Your Greek Property Investment Roadmap

As you navigate your Greek property investment journey, consider these strategic steps to optimize your tax position while maintaining full compliance:

1. Conduct thorough pre-purchase tax assessment: Before finalizing any purchase, have your legal representative calculate all applicable taxes based on the specific property and your personal circumstances.
2. Consider timing advantages: With several tax suspensions in place until 2024, including VAT on new properties and capital gains tax, strategic timing of your purchase or sale can yield significant tax benefits.
3. Explore residency options: If your investment is substantial, programs like the Non-Dom Regime or the Greek Golden Visa can dramatically improve your overall tax position.
4. Budget for ongoing obligations: Create a comprehensive annual budget that accounts for all property-related taxes and fees to avoid unexpected financial pressures.
5. Maintain impeccable documentation: Greek tax authorities are increasingly sophisticated in their enforcement. Maintaining proper documentation of all property-related expenses and income is essential for both compliance and optimization.

The Greek property market continues to evolve, offering enticing opportunities amid its unique tax landscape. While tax considerations should never be the sole driver of investment decisions, understanding and strategically navigating Greece’s property tax system can significantly enhance your returns and ownership experience.

Are you prepared to turn Greece’s complex property tax system into a strategic advantage for your Mediterranean investment? With careful planning, professional guidance, and the insights shared in this guide, you’re well-equipped to make informed decisions that align with both your investment goals and lifestyle aspirations.

Frequently Asked Questions

How does Greek tax residency affect my property tax obligations?

Establishing Greek tax residency (typically by spending more than 183 days annually in Greece) significantly impacts your property tax situation. As a tax resident, you’re eligible for primary residence ENFIA reductions of up to 100% for properties below certain value thresholds. However, Greek tax residents must report and potentially pay taxes on their worldwide income, not just Greek-source income. Non-residents are only taxed on income derived from Greek sources, making residency planning a critical consideration for property investors with significant global income.

Can foreign buyers take advantage of Greek property tax exemptions?

Yes, foreign buyers can access many Greek property tax benefits, though eligibility varies by exemption type. Primary residence exemptions are available to foreign nationals who establish tax residency in Greece. Energy efficiency exemptions apply regardless of nationality or residency status. Historic building exemptions are property-specific rather than owner-specific. The key distinction is typically residency status rather than nationality, with tax residents (regardless of passport) enjoying more extensive exemptions than non-residents.

How does the Greek Golden Visa program interact with property taxation?

The Greek Golden Visa program, which offers residence permits to non-EU nationals investing at least €250,000 in Greek property, does not directly provide tax benefits. Golden Visa holders are not automatically considered tax residents unless they spend more than 183 days annually in Greece. However, combining the Golden Visa with Greece’s Non-Dom tax regime (which caps taxation on foreign income) can create highly advantageous tax situations for wealthy individuals. The purchase of property for Golden Visa purposes is subject to standard transfer taxes and ENFIA, with no special exemptions based solely on visa status.

Article reviewed by Dimitris Papadakis, Luxury Property Specialist | Curating Exclusive Real Estate Opportunities, on April 29, 2025