In brief
Greece has no purchase tax in the Israeli style: a second-hand property is subject to transfer tax at an effective rate of 3.09%, and 24% VAT on a new property is currently frozen. During ownership you pay ENFIA, tax on rental income in brackets of 15% to 45% from 2026, and capital gains tax for individuals is frozen until the end of 2026. Most of the reliefs are date-dependent.
Key takeaways
- 1The effective transfer tax is 3.09% of the higher of the agreed price and the objective value, and it is paid before signing.
- 224% VAT on new properties is frozen, most recently until the end of 2026, under Law 5246/2025.
- 3Capital gains tax for individuals is frozen until 31 December 2026, and a 15% tax is expected to apply afterwards.
- 4From 2026 an intermediate 25% bracket was added to the tax on rental income, and every rent payment must be made by bank transfer.
- 5It is advisable to budget about 5% to 7% of the property value for all acquisition costs on top of the price.
How much does it cost, in tax terms, to buy an apartment in Greece?
The picture is pleasantly surprising: there is no purchase tax in the Israeli style, there is no temporary provision burdening a second apartment, and capital gains tax on sale is currently frozen altogether. But “no purchase tax” does not mean “no taxes” - Greece taxes real estate at several different points: on purchase, in annual ownership and on rental income, and each operates under its own rules. Here is the full map as of July 2026.
| Stage | Tax | Rate or rule | Note |
|---|---|---|---|
| Purchase, second-hand | Transfer tax (RETT) | 3.09% effective (3% + municipal levy) | Paid before the transfer deed |
| Purchase, new property | VAT | 24%, currently frozen | Frozen until the end of 2026, Law 5246/2025 |
| Ownership | ENFIA | About EUR 3 to 4 per sq m basic | Depends on size, location, age and floor |
| Rental | Income tax in brackets | 15%, 25%, 35%, 45% | New brackets from 2026 |
| Sale, individual | Capital gains tax | Frozen until 31.12.2026 | 15% expected afterwards |
| Sale, company | Corporate tax | 22% on the gain | No freeze |
24% VAT on new properties is frozen, most recently until the end of 2026, under Law 5246/2025.
What is the purchase tax in Greece, and how much is it?
On the purchase of a second-hand property, transfer tax (RETT) applies at a rate of 3% of the higher of two values: the price agreed between the parties, or the “objective value” set by the tax authorities according to Ministry of Finance tables (location, size, age of the property and technical characteristics). A municipal levy of 3% of the amount of the tax itself is added, and overall the effective rate is 3.09%.
The tax is paid by the buyer, before the transfer deed is signed before the notary, not after. A point that changes planning: the objective values are frozen until 2027, so there is no concern about a surprise update that would enlarge the tax base in the middle of a purchase process.
What is the tax on a new property in Greece, and is there VAT?
New properties, whose building permit was issued after January 2006, are in principle subject to VAT at 24% instead of transfer tax. In practice this has not been the situation for several years: the Greek government keeps extending the VAT freeze on new properties from year to year, most recently until the end of 2026, under Law 5246/2025.
As long as the freeze is in force, even a new property is taxed only at the regular transfer tax of 3.09%, and not at 24%. This is a difference that can reach tens of thousands of euros in a mid-sized transaction, so it is worth checking the current status of the freeze close to the signing date.
What is ENFIA and how much do you pay as a property owner in Greece?
ENFIA is the annual property tax paid by every property owner in Greece, including foreigners. It is calculated according to the size of the property, its location, the age of the building and the floor, and the basic rates are relatively low - about EUR 3 to 4 per sq m, among the lowest in the European Union.
There are several reliefs worth knowing:
- Heritage buildings worth up to EUR 400,000 are fully exempt.
- Owners of a main residence in villages with fewer than 1,500 inhabitants receive a 50% discount on ENFIA from 2026, and a full exemption is expected in 2027.
- Anyone who insures their property against fire, earthquake and flood is entitled to a 20% discount on properties worth up to EUR 500,000.
How is rental income taxed in Greece from 2026?
Rental income is taxed separately from other sources of income, in brackets. Until the end of 2025 there was a sharp jump from 15% to 35% immediately after EUR 12,000, and from 2026 an intermediate 25% bracket was added that softens the jump.
| Portion of annual income | Tax rate |
|---|---|
| Up to EUR 12,000 | 15% |
| EUR 12,001 to 24,000 | 25% |
| EUR 24,001 to 35,000 | 35% |
| Over EUR 35,000 | 45% |
For a landlord with annual income of EUR 20,000, for example, the reform is worth a few hundred euros a year compared with the old rules.
How is short-term rental through Airbnb taxed?
Short-term rental through Airbnb and its competitors is taxed on the same scale, as long as it involves up to two apartments and no hotel-style ancillary services. Someone who rents out three or more apartments, or provides services such as regular cleaning, is considered a business owner and is also liable for VAT.
And an operational point worth knowing: from 2026 every rent payment in Greece must be made by bank transfer, and not in cash.
Does an individual pay capital gains tax on the sale of a property in Greece?
Not at present. An individual who sells a property in Greece pays no capital gains tax at all. The freeze is in force until 31 December 2026, provided that the sale is not classified as a business activity. Companies that sell properties continue to pay regular corporate tax of 22% on the gain.
This freeze creates a real window of time for anyone considering selling a property in the near to medium term. After 2026 a capital gains tax at a rate of 15% is expected to apply.
Which ancillary costs should be budgeted for in Greece?
Beyond the taxes themselves, additional costs should be budgeted for:
- Notary fees - usually 1% to 1.5% of the transaction value
- Land registry (cadastre) registration fees
- Lawyer's fees
- Translations and authentication of documents
- The cost of issuing the digital identity certificate of the property, a mandatory document in every transfer in Greece
A rule of thumb we give clients: budget about 5% to 7% of the property value for all acquisition costs, on top of the price of the property itself.
What is worth doing before signing?
Taxation in Greece is not a one-time action at the moment of purchase. The VAT freeze, the capital gains tax freeze and the ENFIA reliefs are date-dependent, and some of them may change. Therefore, when we accompany an investor in a purchase in Greece, we check the current status of each of them close to the actual signing date, and we plan the structure of the transaction, and sometimes its timing as well, according to what is in force at that moment and not according to what was true when we started talking. Taxation of real estate in Greece is significantly lower than most Israelis assume, but “low” does not mean “simple”.
What is stated in this article is general information only and does not constitute legal advice, tax advice or an investment recommendation. Tax rates and reliefs in Greece are date-dependent and may change, and specific circumstances may affect their application to a given case. Before any decision, it is advisable to seek individual advice.
Frequently asked questions
Is there a purchase tax in Greece?
Not in the Israeli style, but on the purchase of a second-hand property transfer tax (RETT) applies at 3% of the higher of the agreed price and the objective value, plus a municipal levy of 3% of the tax amount, that is, 3.09% effective. It is paid before the deed is signed.
Is a new property in Greece subject to VAT?
In principle yes, at 24% instead of the transfer tax. In practice VAT on new properties is frozen, most recently until the end of 2026 under Law 5246/2025, so a new property is currently taxed at only 3.09%. It is worth checking the status close to signing.
How much tax is paid on rental income in Greece?
From 2026 the brackets are 15% up to EUR 12,000, 25% between EUR 12,001 and 24,000, 35% between EUR 24,001 and 35,000 and 45% above that. Every rent payment must be made by bank transfer.
Is capital gains tax paid on the sale of a property in Greece?
An individual currently pays no capital gains tax; the freeze is in force until 31 December 2026 and provided that the sale is not a business activity. A 15% tax is expected after 2026. Companies pay corporate tax of 22%.
How much should be budgeted for acquisition costs in Greece?
The rule of thumb suggested in the article is about 5% to 7% of the property value, on top of the price, for all acquisition costs: tax, notary, fees, lawyer, translations and the digital identity certificate of the property.
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