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Generic Tax Name Tax on real estate - Real estate transfer tax
Tax name in the national language Φόρος μεταβίβασης ακινήτων
Tax name in English Real estate transfer tax
Member State EL-Greece
Tax in force since 1950/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Emergency Law No 1521/1950, as subsequently amended (Latest amendments: Law No 2873/2000, Law No 2948/2001 , Law No 3091/2002 , Law 3220/ 2004, Law 3427/2005, Law 3522/2006, Law 3554/2007, Law 3634/2008), Law 3842/2010, Law 3943/2011, Law 4072/2012, Law 4174/2013 and Law 4223/2013 (art.11).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Greece.

 
Taxpayers

Real estate tax calculated on the contractual sale price is always levied on the purchaser. Successful bidders in auctions are considered to be purchasers. In case of expropriation in the public interest, the tax is payable by the person responsible for paying compensation (when other than the State).

 
Tax object and basis of assessment

The transfer of the title of real estate or Greek-registered ships.

  • The following are considered to constitute such transfer:
  • the expropriation of full or restricted title, whether with the suspensive or annulling option or subject to repurchase
  • the establishment of usufruct or other servitude
  • the transfer of the real estate of a company or partnership to its members
  • the relinquishment of the property in real estate or of a right over real estate, or of the title to a ship
  • the expropriation of real estate in the public interest
  • the restitution of a dowry consisting of real estate
  • the division of real estate between its joint owners
  • the transfer of the right of exclusive use over common property belonging to joint owners

 

The tax is assessed on the market-value or on the value determined by the “objective evaluation system” (See “Tax on inheritance”, “Basis of assessment”) or on the contract price paid by the buyer, if that is higher. If, from the terms of a subsequent contract it emerges that the price or the size of the real estate is greater than that stated in the original contract, the tax is due only on the additional cost or the value of the additional piece of the real estate. In the opposite case, if by subsequent contract it is made clear that the price or the size of the real estate purchased is less than that stated in the original contract, no tax is due. If the size of a transferred piece of real estate stated in a transfer contract is greater than that indicated in the deed of its acquisition for valuable consideration, in addition to the applicable tax on the transfer agreement, tax is payable by the vendor of the real estate on the value of the additional portion, the tax period being the year in which the transfer contract was drawn up.

 
Deductions, Allowances, Credits, Exemptions

Exemptions from the real estate transfer tax are granted on:

  • Compulsory expropriation of farming land, according to the Agrarian Code.
  • Transfers where the purchaser is the State, a legal entity governed by public law, a municipality, a church or a monastery.
  • Repeal of expropriation.
  • Part of the value of real estate transferred from a non-profit-making cooperative to its members, which was subject to tax when the real estate was purchased by the cooperative.
  • Compulsory purchase of real estate in the public interest by the State or by legal persons governed by public law.
  • Exchange of real estate between the State and legal entities governed by public law.
  • Purchase of first house by a natural entity, subject to certain conditionsset by art.1 of Law No 1078/1980 as amended (provided that the buyer is not an owner of a residence). More specifically, exemption is granted on condition that the purchased housing (apartment, house, etc.) values up to 200,000€ for a single individual or 250,000€ for a married individual, plus 25,000€ for each of the first two children and 30,000€ for the third and any subsequent child. In case of purchased building plots, the exemption threshold is 50,000€ for singles and 100,000€ for married individuals, plus 10,000€ for each of the first two children and 15,000€ for the third and any subsequent child. If the married purchaser is handicapped (67% or more) by mental or physical disability, the exemption threshold increases to 275,000€.
    After the subtraction of the non-taxable limit, the part of the value in excess, if any, is subject to tax at a rate of 3%.
    In the amount of the tax exemption for the purchase of house, is also included the value of one parking and one storage place that each of them occupies a space of up to 20 sq.m., provided that they are located in the same building plot and are purchased together with the same contract.
    T
    he exemption from tax for the purchase of first house is granted, on condition that the purchaser will retain the ownership of the house for a minimum period of 5 years. Otherwise, in case of transfer of the house, the purchaser is liable to pay the tax that was exempted.
    The purchaser has the right to claim the exemption once. In case of claiming the exemption for every purchase of property, the purchaser has to pay the tax that was exempted before, provided that he has no right of full ownership in any othe
    r house.
    It has to be noted that the exemption from the tax for the purchase of first house is granted  to Greek and EU citizens as well as citizens of Turkey, Albania, countries of former Soviet Union, who are of Greek origin, recognised refugees and citizens of third countries who are benefited from the special regime (Law 4251/2014) of living for a long time in Greece, provided that they are permanent residents of Greece at the time of the purchase or they intend to become permanent residents of Greece within two years from the purchase.
  • Contracts for the purchase or exchange of agricultural land, and any installations thereon, used exclusively for farming.
  • Mergers and transformations of undertakings: The contribution of real estate to undertakings resulting from mergers or transformations is exempted from real estate transfer tax provided that the merger or transformation satisfies the very specific conditions laid down either by law 1297/72 as amended (e.g. the property must be owned and in use by the undertaking that is being merged or transformed at the time of the merger or the transformation, and the property must be used by the new undertaking in the course of its business activities for at least five years after) or by Law No 2166/1993 as amended (e.g. the merger or transformation has to result in either a public limited company or a private limited company, the undertakings transformed must keep Third Category Books, according to the Code of Books and Accounts, and must have compiled at least one balance sheet for a period of twelve months or more).
    Under the Law 4072/2012, art. 322, par.1, the effect of the provisions of law 1297/1972 shall be extended sine die. According to par. 5, art. 116 of the Law 4072/2012, laws that provide incentives for business transformations also apply to private companies. 
  • Transfer of real estate that was the object of a leasing contract to the lessee at the end the leasing period (at least 10 years), or the buying out of such an estate by the lessee before the end of the leasing period, according to the terms of the leasing contract and after the completion of three years from the start of the leasing period, as well as transfers of real estate effected within the realm of the “sale and lease back” system, according to the provisions of the Law (art. 6 of Law No 1665/1986 as amended by par.2 of art.26 of Law No 3091/2002 and Law 3483/2006).
  • Also, a special exemption from the tax is provided to persons buying a house in the region of Thrace, regardless of whether they already own another house in another region of Greece. The exemption is granted on condition that the buyer will in fact reside in this house in Thrace for at least five years after the time of the purchase.
 
Rate(s) Structure

Unified rate 3% calculated upon the taxable value of the real estate.

An additional tax in favour of the municipality is also levied at a rate of 3%.

The rate is reduced:

  • to one quarter when property is divided among the joint owners as well as when a private or limited partnership or a private limited company is dissolved and its immobile property is distributed among the partners
  • to one half on exchange of property of equal value and in case of expropriation in the public interest.
 
Tax due date

The entire tax is paid before the draft of the final deed of purchase and after the submission of the relevant declaration.

 
Tax collector

Ministry of Finance.

 
Special features

Beneficiary:

Municipalities: 3%.

The State's right to levy real estate transfer tax lapses after five years have passed from the end of the year in which the tax declaration was made. The State's right to charge the main and the additional tax, should liability arise after exemption is granted, as far as the conditions of the exemption are concerned, lapses after 15 years have passed from the end of the year in which exemption was granted, even if the case has been terminated in accordance with Article 8(2) and (3) of Emergency Law No 1521/1950 (provisional estimate). In cases of tax evasion, corrective tax assessment act can be issued within 20 years from the end of the year, during which the filing of tax declaration is due.

 

Declaration

Where the objective evaluation system applies, the person liable to pay the real estate transfer tax must enter the “objective” value in his tax declaration, upon which the tax is calculated. If, however, the transfer deed states a higher contractual price then that serves as the tax basis. Where the objective evaluation system does not apply, the full amount of tax corresponding to the declared transfer value is payable.

 

In case of inaccurate declaration, a additional tax (penalty) is due (Law No 4174/2013, art. 58):

  • 10% of the difference if the difference corresponds to 5%-20% of the tax assessed under the tax declaration;
  • 30% of the difference if the difference exceeds 20% of the tax assessed under the tax declaration;
  • 100% of the difference if the difference exceeds 50% of the tax assessed under the tax declarationand the inaccurate filling is proved to be intentional.
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214ca

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 383.00 EUR 0.20
2011 481.00 EUR 0.23
2010 675.00 EUR 0.30
2009 1,354.00 EUR 0.57
2008 1,669.00 EUR 0.69
2007 1,693.00 EUR 0.73
2006 1,489.00 EUR 0.68
2005 1,030.00 EUR 0.52
2004 928.00 EUR 0.48
2003 1,016.00 EUR 0.57
2002 904.00 EUR 0.55
2001 915.00 EUR 0.60
2000 778.00 EUR 0.54
1999 613.00 EUR 0.44
1998 476.00 EUR 0.37
1997 542.00 EUR 0.43
1996 357.00 EUR 0.31
1995 273.00 EUR 0.26

Comments