REAL ESTATE TRANSACTION TAXES
The taxes associated with the purchase and sale of a property are as follows:
- Value Added Tax (VAT)
- The real estate transfer tax paid for by the purchaser
- The capital gains tax on property payable by the seller
- The Uniform Real Estate Property Tax (ENFIA)
- The real estate tax (TAP) paid by the property owner of the property every year
Real Estate Purchase Tax
According to the current Greek legislation, the purchase of a property is subject to a VAT of 24% on the sale price.
However, the Law 5000/2022 extends the possibility subjecting newly built constructions to a VAT suspension regime which exempts buyers from this tax, for another 2 years until 31/12/2024.
Taxation of Transfer of Real Estate
Before the contract is drawn up, the buyer pays the Property Transfer Tax of 3% on the assessed value of the property + Municipal Taxes of 3% on the Property Transfer Tax.
Property Value Added Tax
Surplus value is the difference between the real value of the property when the seller acquired it and the declared value that the seller receives today on its sale.
Under the new Law 5000/2022, the payment of the 15% Value Added Tax on the difference between the sale value and the acquisition value of the transferred property is extended for 2 years until 31/12/2024.
Real Estate Ownership Tax
Property owners in Greece pay the Uniform Real Estate Property Tax (ENFIA) every year, which corresponds to the sum of the main tax and the additional tax.
Uniform Real Estate Property Tax (ENFIA) is calculated on the basis of a range of zonevalues and coefficients of determination which vary according to specific characteristics of the building, including but not limited to the following:
– building age
– building surface area
For our area of activity the tax is calculated at 2,5€-3€/sqm
For real estate with a total value of more than EUR 200,000, the additional amount is taxed additionally at a rate of 0.1% to 1.15%.
REAL ESTATE HOLDING TAX
Taxation for the leasing of real estate is as follows:
– by a factor of 15%, for amounts up to EUR 12,000,
– by a factor of 35% for amounts between EUR 12,001 and EUR 35,000 and
– by a factor of 45% for a higher amount.
If you have a company that owns a property for rent, then the net income from the rental of the property is added to the profit from business activity and you are taxed by a factor of 22%