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I55 Tax

George Morgan
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Page no: I51


Tax Type Details
Rental Income
Up to €10,000 9%
€10,000 – €20,000 22% on band over €20,000
€20,000 – €30,000 28% on band over €30,000
€30,000 – €40,000 36% on band over €30,000
Over €40,000 44% on all income over €40,000
Rental Income



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Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 40% 7,200 28,800 57,600
Depreciation4 10% 1,800 7,200 14,400
= Taxable Income 9,000 36,000 72,000
Income Tax5
Up to € 12,000 15% 1,350 1,800 1,800
Over € 12,000 35% 8,050 8,050
Over € 35,000 45% 450 16,650
Annual Income Tax Due 1,350 10,300 26,500
Tax Due as % of Gross Income 7.50% 14.31% 18.40%


The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 1.00 EUR

3 A standard deduction of 40% is allowed to account for income-generating expenses.

Taxpayers may choose itemized deductions instead of availing the standard deduction, but the expenses must be supported by valid invoices.

4A deduction of 10% is allowed for depreciation expense.

5 Rental income earned by nonresident individuals are taxed at progressive rates.

  • [ ] first-time sale of newly-constructed buildings
  • [ ] by a developer (or prof. agent)
  • [ ] Pay VAT 24% on total price

A 24% VAT applies on the sale of new buildings in Greece by persons subject to VAT. The taxable value is the price that the taxable person received or is deemed to receive or is anticipated to receive, increased by any additional provision connected with the abovementioned transaction. Certain minimum values may apply depending on the case.In particular, a supply of real estate subject to VAT is considered to be the transfer for consideration of ownership or rights in rem of buildings or part of buildings and the land on which they stand, before their first occupation. The above transaction is taxable only when the following conditions are fulfilled:The person who transfers is a taxable person, or anyone who carries out, on an occasional basis, the aforementioned transaction on condition that he opts for the standard VAT regime;The construction licence is issued after January 1, 2006The tax li

Transfer Tax Source1

Source2: PWC

  • [ ] No Transfer Tax for first time buy

Any transfer of real estate which is not subject to VAT is subject to Real Estate Transfer Tax. The real Estate Transfer Tax rate applicable is 3% on the higher between market and objective value of real estate property. The “objective value” is a tax value per property calculated based on a number of pre-determined criteria.Such cost is further increased by fees such as municipal tax (3% of the amount of Real Estate Transfer Tax), notarial, land registration, legal which may still account for a percentage (between approx. 1-2%) of the transaction value. However, for large investment properties, it is not uncommon that transfers are carried out by way

  • Example
  • [ ] 250000€ Price x 3% = 7500€
  • [ ] 7500€ *3% = 220€
  • [ ] 250K € —-> 7720 € Transfer Tax
  • [ ] = Total 3.09%
General Tax


Property Tax (ENFIA) (source)

Annual Property Tax (ENFIA)


Main Component, State


0,003711,25 €/sq. (principal tax) By multiplying the square meters of the land by the principal tax and other coefficients affecting the value of the property
Additional Component Companies 0.55% of cadastral value
Individuals 0.1 under 200 K€
Rental Income
progressive tax scale
Rental income earned by individuals and companies is subject to Greek income tax.

For individuals, the tax is computed according to a progressive tax scale which reaches up to 45%. 

Rental Income
solidarity contribution
In addition to the income tax due, rental income is also subject to a solidarity contribution which is computed according to a progressive tax scale up to 10%. The solidarity contribution is imposed on the total of the income realised by the individual.
Rental income via a company Rental income is part of the normally taxable income of any corporation. Corporate tax rate is currently 29%, while a 15% dividend WHT applies; foreign investors owning Greek companies through an EU-based company may benefit from the Parent – Subsidiary Directive exemption in which case no dividend WHT would apply.

Greek companies are allowed to perform tax deductible depreciation on the buildings’ (but not land) acquisition cost. The rate is currently set (for properties acquired after 1.1.2013) to 4% for buildings in general. Moreover, interest that finances real estate acquisition is in general deductible; however, Greek thin-capitalisation rules restrict interest deductions exceeding 30% of a company’s tax adjusted EBITDA. However, no such restriction applies if the total annual net interest expense of the subject company is below EUR 3m.

Thus, leveraging a Greek real estate company may typically significantly reduce local income tax exposure.

Special tax 15%

Normally is imposed only on cases of inadequate disclosure of ultimate individual owners of the real estate property

Further sources PWC

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