What is the current Real Estate Transfer Tax?
Under the current framework, the standard Real Estate Transfer Tax is calculated at 3% of the taxable value of the property.
In addition, a municipal surcharge corresponding to 3% of the principal transfer tax is imposed, resulting in an effective overall burden of approximately 3.09% of the taxable value.
The transfer tax is payable by the purchaser and constitutes one of the main costs that must be taken into account when planning a real estate acquisition in Greece.
What will change?
Under the announced reform, the Real Estate Transfer Tax is expected to increase from 3% to 15% for certain residential property acquisitions by natural persons who are citizens of countries outside the European Union and the European Economic Area.
The measure does not constitute a general increase of the Real Estate Transfer Tax for all purchasers.
Its application will depend on the purchaser’s nationality and residence status, the type and use of the property, and whether the purchaser falls within one of the applicable exemptions.
The new regime is expected to apply from 1 July 2027, subject to the final legislative provisions and any transitional arrangements that may be introduced.
Who will be affected?
The increased tax rate is primarily relevant to purchasers who:
are natural persons
are citizens of third countries, outside the EU and EEA;
acquire residential property in Greece and do not fall within an applicable exemption or special category.
EU and EEA citizens are not generally within the scope of the announced increase.
It is therefore essential to assess each transaction individually, particularly where the purchaser holds a residence permit in Greece or another EU country.
How will the change affect the cost of purchasing a property?
The financial impact can be substantial.
For example, for a residential property with a taxable value of €250,000:
Under the current 3% rate:
-
Real Estate Transfer Tax:
€7,500
-
Including the 3% municipal surcharge: approximately
€7,725
Under the proposed 15% rate:
-
Real Estate Transfer Tax:
€37,500
-
Including the corresponding surcharge: approximately
€38,625
This represents an increase of approximately €30,000 in the principal transfer tax alone.
For higher-value properties, the additional cost becomes even more significant.
What does this mean for Golden Visa investors?
The increase in the Real Estate Transfer Tax does not abolish the Greek Golden Visa programme, nor does it prevent third-country nationals from purchasing real estate in Greece.
However, it introduces an additional financial consideration for investors who intend to acquire residential property in Greece and, at the same time, pursue residence rights through investment.
For prospective investors, the timing of the transaction may therefore become particularly important.
Anyone considering a property acquisition should examine the applicable tax regime before entering into a binding agreement and should take into account any transitional provisions contained in the final legislation.
Why is the measure being introduced?
The announced reform forms part of the wider policy response to the housing affordability challenges faced in Greece.
The significant demand for residential properties from foreign purchasers, particularly in certain highly sought-after areas, has contributed to increased pressure on the housing market.
The higher transfer tax is intended, among other measures, to act as a fiscal disincentive for certain categories of foreign residential property purchases.
Its ultimate impact on property prices, foreign investment and the wider Greek real estate market will depend on how the measure is implemented and how the market responds.
What should prospective buyers consider?
For third-country nationals considering the purchase of property in Greece, early legal and tax planning is becoming increasingly important.
Before proceeding with a transaction, buyers should assess:
- their nationality and residence status;
- the type and intended use of the property;
- the taxable value of the property;
- the expected completion date of the transaction;
- whether an exemption applies;
- any transitional provisions;
- the applicable transfer tax rate; and
- whether the acquisition is connected with a Golden Visa application.
A proper legal and tax assessment before signing the transaction documents can help purchasers avoid unexpected costs and ensure that the acquisition is structured in accordance with the applicable legal framework.
Conclusion
The announced increase of the Real Estate Transfer Tax from 3% to 15% represents a significant upcoming development for certain residential property acquisitions in Greece.
However, the measure should not be understood as a general increase of the transfer tax for all property purchases or all foreign buyers.
The precise scope of the new regime, the applicable exemptions and any transitional arrangements will depend on the final legislative framework.
For third-country nationals considering purchasing residential property in Greece, obtaining professional legal advice before committing to a transaction is particularly important in order to determine the applicable tax treatment and the overall cost of the investment.
This article is intended for general informational purposes and does not constitute legal or tax advice. The application of the new regime should be assessed on the basis of the final legislation and relevant administrative guidance.