Selling and transferring Greek Real Estate

DIRECT SALE OF REAL ESTATE

Resident individual

Capital gains

Capital gains realised by individuals are generally taxable at a rate of 15%. By exception capital gains realised by individuals on the disposal of real estate is deferred until 31 December 2022. This exemption has been enacted every year since 2013 and is expected to continue until other taxes on real estate are rationalised.

VAT / transfer tax

As a general rule, the supply and lease of immovable property are exempt from VAT. However, effective from 1 January 2023 VAT is will be charged if a new building is sold before its first occupation. In such a case, the applicable tax rate is 24%.

Transfer tax applies to the acquisition of the legal or economic ownership of Greek real estate and is payable by the purchaser. The tax value of real estate will be taxed against a tax rate of 3%. Where VAT is charged on the saale of a neww building the 3% transfer tax is not payable.

Losses

Losses arising on sales of Greek real estate made by individuals are ignored as gains are presently not taxable.

Non-resident individual

Non-resident individuals are treated in the same manner as resident individuals.

Resident company

Capital gains

Capital gains arising on the sale of Greek real estate are subject to corporate income tax as business income. Business income is taxed at a tax rate of 24%.

The corporate income tax on capital gains is based on the difference between the net sales proceeds and tax book value.

VAT/transfer taxes

As a general rule, the supply and lease of immovable property are exempt from VAT. However, effective from 1 January 2023 VAT is will be charged if a new building is sold before its first occupation. The applicable VAT rate is 24%.

Transfer tax applies to the acquisition of the legal or economic ownership of Greek real estate and is payable by the purchaser. The tax value of real estate is taxed at a tax rate of 3%. Where VAT is charged on the sale of a new building, as mentioned above, the 3% transfer tax is not payable.

Losses

If a loss is realised on the sale of a property, this loss may be carried forward for up to five years and used to offset future gains.

Non-resident company

Non-resident companies are treated in the same manner as resident companies, since Greek real estate held by a foreign company is considered to give rise to a permanent establishment in Greece. However, losses can only be offset against other Greek taxable income.

INDIRECT SALE

Resident individuals

Capital gains

Capital gains realised by individuals on the sale of unlisted shares are subject to income tax. A tax rate of 15% applies on the difference between the sales price and the acquisition price of the shares. If the seller of listed shares holds less than 0,5% of the share capital the sale is exempt from Capital Gains Tax. 

VAT / Transfer Tax

The transfer of shares is not subject to indirect taxes.

Non-resident individual

Non-resident individuals are treated in the same manner as resident individuals.

Resident company

Capital gains

Capital gains are subject to Greek corporate income tax at a rate of 24%.

VAT / Transfer Tax

As a general rule, the supply and lease of immovable property are exempt from VAT. However, VAT is charged if a new building is sold before its first occupation. The applicable VAT rate is 24%.

The transfer of shares is not subject to transfer tax or VAT.

Withholding tax

Not applicable.

Losses

Losses arising on the sale of shares may be offset against profits of the same year or the next five years.

Non-resident company

Non-resident companies are treated in the same manner as resident companies, since Greek real estate held by a foreign company is considered to give rise to a permanent establishment in Greece.

DIRECT TRANSFER INTRA CONCERN (GREEK REAL ESTATE TO GREEK COMPANY)

Capital gains

Capital gains arising on the sale of Greek real estate are subject to corporate income tax as business income. Business income is taxed at a tax rate of 24%.

The corporate income tax on capital gains is based on the difference between the net sales proceeds and tax book value.

VAT/transfer taxes

As a general rule, the supply and lease of immovable property are exempt from VAT. However, effective from 1 January 2023 VAT  will be charged if a new building is sold before its first occupation. The applicable VAT rate is 24%.

Transfer tax applies to the acquisition of the legal or economic ownership of Greek real estate and is payable by the purchaser. The tax value of real estate is be taxed at a tax rate of 3%. Where VAT is charged on the sale of a new building, as mentioned above,  the 3% transfer tax is not payable.

Losses

If a loss is realised on the sale of a property, this loss may be carried forward for up to five years and used to offset future gains.

Under the provisions of incentive legislation, which apply to business combinations or business restructurings (merger and acquisition provisions)  transfer taxes and capital gain taxes may be avoided.

INDIRECT TRANSFER INTRA CONCERN (GREEK REAL ESTATE TO GREEK COMPANY)

Capital gains

Capital gains are subject to Greek corporate income tax at a rate of 24%.

VAT / Transfer Tax

The transfer of shares is not subject to transfer tax or VAT

Losses

Losses arising on the sale of shares may be offset against profits of the same year or the next five years.

If the merger and acquisition provisions apply transfer taxes and capital gain taxes may be avoided.

DIRECT TRANSFER INTRA CONCERN (GREEK REAL ESTATE TO FOREIGN COMPANY)

Capital gains

Capital gains arising from the sale of Greek real estate are subject to corporate income tax as business income. Business income is taxed at a tax rate of 24%.

The corporate income tax on capital gains is based on the difference between the net sales proceeds and tax book value.

VAT/transfer taxes

As a general rule, the supply and lease of immovable property are exempt from VAT. However, effective from 1 January 2023 VAT  will be charged if a new building is sold before its first occupation. The applicable VAT rate is 24%.

Transfer tax applies to the acquisition of the legal or economic ownership of Greek real estate and is payable by the purchaser. The tax value of the real estate is taxed at a tax rate of 3%. Where VAT is charged on the sale of a new building, as mentioned above,  the 3% transfer tax is not payable.

Losses

If a loss is realised on the sale of a property, this loss may be carried forward for up to five years and used to offset future gains.

Under the provisions of incentive legislation, which apply to business combinations or business restructurings (merger and acquisition provisions)  transfer taxes and capital gain taxes may be avoided.

If the merger and acquisition provisions apply transfer taxes and capital gain taxes may be avoided.

INDIRECT TRANSFER INTRA CONCERN (GREEK REAL ESTATE TO FOREIGN COMPANY)

Capital gains

Capital gains are subject to Greek corporate income tax at a rate of 24%.

VAT / Transfer Tax

The transfer of shares is not subject to transfer tax or VAT

Losses

Losses arising on the sale of shares may be offset against profits of the same year or the next five years.

If the merger and acquisition provisions apply transfer taxes and capital gain taxes may be avoided.

TRANSFER GREEK REAL ESTATE TO AN EU-COMPANY

If the transferor’s home jurisdiction is in the European Union,the same rules apply as in the case where th trsnsgeror is a Greek company for example the liability to tax on capital gains may be avoidable if the merger and acquisition provisions apply. Several detailed conditions apply which can be found in the Council Directive of 19 October 2009.

How can we help you?

Contact us by phone +30 210 6717733 or submit your questions, comments, or proposal requests.

Email us