Real estate taxes in Greece
Greece is one of the countries that suffered the most from the last economic crisis in 2008. The country has benefited from several stimulus packages and is now on the upswing. The real estate sector is not left out, and property prices that had fallen sharply are now on the rise. Nevertheless, when buying a property in Greece, it is important to calculate the taxes in advance in order to control your budget and avoid unpleasant surprises. I’m now going to explain the real estate taxes in Greece. I’m Lisbob, the expats assistant, and I will tell you everything you need to know about real estate taxes in Greece.
The Greek government has revised the rate of various charges related to real estate in order to promote the recovery of the sector. Thus there are mainly 4 real estate taxes in Greece:
● Single tax on real estate
● Tax on transfer rights
● Annual property tax
● Rental tax
Real estate property tax
As in all countries, real estate is subject to taxes that vary according to the value of the property. The main one is the tax on real estate. This is the one you are subject to when a property enters your estate.
In Greece, it is a progressive tax that varies from 0.1% to 1%. The progressive rates of this tax are summarized as follows according to the value of the property:
● For a property with a value less than or equal to 400,000 euros, the tax is 0%
● For a property worth between 400,000 and 500,000 euros, the tax is 0.1%
● For a property worth between 500,000 and 600,000 euros, the tax is 0.3%
● For a property worth between 600,000 and 700,000 euros, the tax is 0.6%
● For a property worth between 700,000 and 800,000 euros, the tax is 0.9%
● For a property with a value exceeding 800,000 euros, the tax is 1%.
It should be noted, however, that the tax rate is cumulative and is applied to the difference between the different price levels. For example, to have the tax value of a property worth 550,000 euros, you need:
● Take the tax value of the previous level, i.e. the rate of 0.1% applied to the difference of 100,000 euros, i.e. 100 euros,
● Add this to the value of the rate corresponding to the current level, i.e. the 0.3% applied to the difference of the extreme values of this level (500,000 and 600,000 euros).
By doing this, you get a value of €400 for this tax.
You will knkow everything about real estate taxes in Greece
Transfer tax
This is a special tax that you have to pay when you buy a property. Its rate is set at 3.09%. This tax is only applicable to certain types of goods:
● New real estate having obtained a building permit before 2006.
● Used real estate, regardless of when the building permit was obtained.
When the new property has a building permit issued after 2006, the value of the transfer tax is 23% of the value of the property. The value of the property is a concept determined in Greece according to the following criteria:
● The geographical location of the property
● The area occupied by the property
● The architectural style of the property
● Other specifications of the property.
This ‘objective value’ may be different from the purchase value of the property. The rate of real estate taxes you will have to pay depends on this notion of objective value.
In addition to the property tax and transfer tax, you will also have to pay another tax: the annual uniform property tax.
Annual property tax
The annual property tax has been in place since 2014. It is a tax with a rather complex calculation. It is therefore best to contact the tax authorities to find out the exact rate applicable to the property you have. This tax varies in Greece depending on the region and the type of property.
Thus, a property in an unbuilt rural area will have a different tax than a property in an urban area that is built. When you buy a used good, the rate of this tax is specified on the sales documents. Nevertheless, the rate of this tax varies between 0.1% and 1.15%.
This tax is also called ENFIA. It has seen successive increases, but in recent years the trend has been downward. In addition to this annual tax, there are also municipal taxes on real estate.
One of them is called TAP. Its rate varies between 0.025% net and 0.035% of the value of the property. It is a tax that is usually included in the electricity bill.
When you rent out a property, you will also have to pay a tax on the rental of that property.
Rental tax
It is applied to the profit you make from the rental of a property you own. The rate of this tax varies from 15% to 45% according to the following breakdown:
● For a rent less than or equal to 12,000 euros, the tax rate is 15%
● For a rent between 12,000 and 35,000 euros, the tax rate is 35%
● For rents over 35,000 euros, the tax rate is 45%.
It should be noted, however, that you are subject to a tax when you sell a property. Therefore, in the case of a sale of a property that you have owned for less than 5 years, you must pay a tax of 15% of the value of the property.
To conclude:
Owning a property in Greece requires you to pay taxes. These taxes are of different kinds and the rates are applied to the objective value of the property which is the real value estimated by the tax authorities.
Before acquiring a property or taking possession of it following a bequest or an inheritance, find out about the taxes that apply to it with the help of a lawyer.