Greek property tax basics: what foreign buyers must know

Property taxes in Greece fall into four categories: taxes on buying, owning, selling and renting out real estate. Taxes also apply when property is inherited or received as a gift.

Buying property involves taxes and additional fees. Buyers must pay a transfer tax and a surtax on it when the property changes ownership. Other costs include notary fees, registration fees for the new ownership, and real estate agent commissions.

Owning property requires paying an annual property tax, called ENFIA, and a municipal tax. Both are based on the property’s official value and are charged as fixed fees rather than percentages.

Renting out property is considered taxable income for individuals and part of a company’s profit for legal entities. A digital transaction fee also applies.

Landlords may be able to deduct expenses such as maintenance, mortgage interest and property management fees from their taxable income.

Selling property normally triggers a capital gains tax. However, this tax is suspended until December 31st, 2026.

Property owners in Greece may be eligible for the Greece Golden Visa, which serves as a residence permit valid for 5 years.

The minimum investment required is €250,000. This threshold applies to properties purchased for renovation or conversion into residential use. For other types of properties, the following investment requirements apply:

• €800,000 for real estate located in high-demand areas such as Athens, Thessaloniki, Santorini, and other islands with a population of more than 3,100 residents;

• €400,000 for real estate in all other regions.

Annual property tax in Greece is called ENFIA, or the Unified Property Ownership Tax. It applies to both buildings and lands, and is paid in 12 monthly instalments.

There are no fixed tax rates. Instead, Greece imposes a fee per square metre:

• €2 to 16.20 per m² — for buildings;

• €0.0037 to 9.25 per m² — for lands.

The exact fee depends on factors such as size, location, use and other characteristics of the property. Rates are set by the Greek Ministry of Finance.

If the total taxable value of a property owner’s real estate exceeds €500,000, the main tax is increased by 5 to 20%. This surcharge applies to the entire amount of the main tax, not just the portion exceeding €500,000.

Municipal tax is paid through electricity bills and is usually between 0.025% and 0.035% of the objective property value.

Tax on cleaning and lighting services is charged separately. Property owners pay a fee for garbage collection and street lighting, calculated by multiplying the property’s area by the rate set by the local municipality.

Buying real estate. Buyers in Greece must pay several taxes and fees in addition to the purchase price:

1. The transfer tax, which is set at 3% of the property’s objective value determined by the Ministry of Finance.

2. Surtax on the transfer tax of 0.09%, benefiting local municipalities and communities.

3. Notary fees, which typically range from 1 to 2% of the property price, depending on the complexity of the transaction.

4. Fees for registering the new ownership in the land registry or cadastre, which usually amount to about 0.5% of the property value.

In total, buyers should expect to pay 5 to 7% of the property’s value in taxes and associated fees on top of the purchase price.

VAT at 24% usually applies to new properties, but this tax is suspended until December 31st, 2025. Instead, the standard transfer tax and supplementary tax, totalling 3.09%, apply.

Selling real estate. The main tax triggered when selling property is the capital gains tax. However, capital gains from property sales are not taxed until December 31st, 2026. When this exemption expires, a 15% capital gains tax will apply.

Rental income. Both residents and non-residents are subject to tax on rental income from properties located in Greece. The rate depends on the annual income:

• 15% — up to €12,000;

• 35% — €12,001 to 35,000;

• 45% — above €35,000.

These rates apply to net income, meaning after deductible expenses.

Landlords may qualify for a 3-year tax exemption on income from long-term residential leases, provided all the following conditions are met:

1. The property does not exceed 120 m².

2. The lease is long-term and signed between September 8th, 2024 and December 31st, 2025.

3. The property was previously vacant or used for short-term rentals.

If the lease is terminated early, the tax exemption is cancelled for that year. If the property is rented short-term within the 3-year period, the exemption is revoked retroactively.

Digital transaction fee. On December 1st, 2024, Greece introduced a digital transaction fee, replacing the previous stamp duty for certain agreements, including real estate leases. This fee is paid by the landlord and applies to commercial property leases where VAT does not apply. The rate is 3.6% of the contract value.

Real estate transactions subject to VAT or real estate transfer tax are not affected by the digital transaction fee.

Inheritance tax applies to real estate located in Greece, regardless of whether the heir resides in Greece or abroad. The heir is responsible for paying the tax.

Gift tax is incurred when property is transferred as a gift, usually through a notarised deed, and is paid by the recipient. It applies to assets located in Greece, and in some cases, to foreign assets gifted into Greece.

For both inheritance and gift taxes, the rate depends on the degree of kinship between the previous owner and the recipient. As a general rule, closer family relationships result in lower tax rates.

ENFIA. Companies in Greece pay an annual property fee based on surface area:

• €2 to 16.20 per m² — for buildings;

• €0.0037 to 9.25 per m² — for land.

If a property owner's total taxable real estate exceeds €500,000, a 5 to 20% surcharge is added to the full amount of the main tax.

Legal entities also pay a supplementary tax on the total value of their rights to property at a rate of 0.55%. Self-used real estate is taxed at the reduced rate of 0.1%.

Municipal tax. Legal entities are subject to a municipal tax ranging from 0.025 to 0.035% of the property’s objective value.

Special real estate tax, SRET , of 15% applies to companies that own property in Greece but do not clearly disclose their actual owners. The goal of this tax is to prevent anonymous or opaque ownership of real estate.

A company can avoid paying SRET if it fully discloses its real owners to the Greek tax authorities or falls under a special exemption category. These categories include the following:

• companies with registered shares up to individuals;

• listed on a stock exchange;

• shipping companies using property for offices, warehouses, or staff;

• active businesses earning more from trade than from property;

• charities, schools, and religious groups using the property for their mission;

• banks and funds in cooperative countries, under supervision;

• social security funds and regulated real estate funds;

• companies owned by charitable foundations using property for non-profit purposes.

Transfer tax of 3% is levied on the taxable property value upon purchasing real estate, with an additional municipal surcharge that brings the total rate to 3.09%.

VAT. Generally, real estate transactions are exempt from VAT. However, if a company offers short-term rentals with hotel-like services, it may be required to charge 13% or 24% VAT and register accordingly.

Taxes on rental income and capital gains. Rental income and capital gains are considered part of a company’s taxable profit, which is subject to a 22% corporate tax rate.

All property owners, including foreign nationals, must pay ENFIA on real estate located in Greece. To pay the tax, the property owner must undergo the following steps:

1. Obtain an AFM. Visit the local tax office or appoint a local representative to secure a tax identification number.

2. Submit the E9 Form. Log in to myAADE and complete the E9 Form, which includes all necessary property details for tax calculation.

3. Access your tax certificate. Once the tax has been calculated, the ENFIA notice will be available in your myAADE account.

4. Make the payment. You can pay online by credit or debit card, or via internet banking, using the payment codes or barcode from your ENFIA notice.

ENFIA is typically payable in 12 monthly instalments. However, the instalment schedule may vary each year, so property owners should check annual announcements from the tax authority.

Payment can be made online or through any Greek bank using the payment codes printed on the ENFIA notice. Alternatively, an e-payment can be generated in myAADE and paid by credit or debit card, or via internet banking using the barcode provided in the portal.

1. Tax optimisation. Investors can access the Non-Domicile tax regime. This regime allows beneficiaries to pay a flat tax of €100,000 on global income, regardless of the amount.

2. Visa-free travel within the Schengen Area. Greece is part of the Schengen Area, and its residents can freely enter the other 28 Schengen states. The permitted stay is 90 days within any 180-day period.

3. Residency for the entire family. Investors applying for the Greece Golden Visa can include their immediate family members. This covers spouses or partners, children under 21, and parents of any age. The investment threshold remains the same regardless of family composition.

4. Investment returns. Properties acquired under the Greece Golden Visa can be rented out, offering investors an annual yield of up to 10%.

Greek real estate values are increasing annually by 5 to 12%, depending on the type and location of the property.

5. Prospect of citizenship. Golden Visa holders may apply for Greek citizenship 7 years after receiving their residence permits. Eligibility requires continuous residence in Greece and successful completion of citizenship and Greek language exams.

Insure the property. If you insure your residence against natural disasters, ENFIA will be reduced:

• by 20% if the property's value is up to €500,000;

• by 10% if the value exceeds €500,000.

To qualify, the property must be insured for at least 3 months in the previous year. If insured for less than a full year, the discount is applied proportionally. For instance, a 6-month insurance period yields a 10% or 5% discount respectively.

Declare deductible expenses. The Greek tax system allows property owners to deduct certain costs from rental income, lowering the net taxable base.

Individual owners can deduct:

• 5% of gross rent automatically for maintenance;

• 60% of renovation and energy upgrade costs, up to €16,000 over three years;

• municipal property taxes.

Legal entities can deduct all actual business expenses, such as repairs, insurance, property management, and depreciation.

Split the ownership. ENFIA is calculated per taxpayer, so dividing property ownership among family members can reduce liability.

For example, a married couple jointly owns property worth €1 million, with each spouse holding a 50% share. This means each spouse’s share is €500,000, which stays under the surcharge threshold. If one spouse owns the entire €1 million, the portion exceeding €500,000 would be subject to a surcharge.

Choose property wisely. The characteristics of the property itself affect your tax burden. When choosing the property consider the following:

1. Zone value. Properties in high-zone-value areas have higher ENFIA. A home in a mid-tier location can offer better yield with lower tax.

2. Objective value under €500,000. Staying below this threshold avoids the ENFIA surcharge.

3. Energy-efficient buildings. They may qualify for renovation subsidies and reduce utility costs.

4. Property age. Older properties may allow higher depreciation and lower assessed value for ENFIA.

Consider double taxation treaties . Non-residents earning income from Greek property may also face taxation in their home country. Greece has signed over 50 double taxation treaties, which often allow you to claim a foreign tax credit. This ensures you do not pay tax twice on the same rental income, capital gain or inheritance.

1. Property owners in Greece pay an annual ENFIA tax ranging from €2—16.20 per m² for buildings and €0.0037—9.25 per m² for land, plus a local municipal tax.

2. Property buyers are subject to a 3% transfer tax, a 0.09% surtax, notary fees of 1—2%, and a 0.5% registration fee. 

3. Foreign property buyers may qualify for the Golden Visa.

4. Rental income is taxed at 15—45%.

5. Inheritance and gift taxes range from 0 to 40%, depending on the degree of kinship.

6. Legal entities pay ENFIA, a supplementary property tax, municipal levies, transfer taxes, and are taxed on rental income and capital gains at a corporate tax rate of 22%.

7. To reduce tax liabilities, owners can insure their property, declare all deductible expenses, and split ownership among family members.