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[BUYING AND SELLING REAL ESTATE IN GREECE]
enjoy the status of long-term residency in Greece. Value Added Tax for new buildings When it comes to new buildings, namely buildings the building permit of which has been issued or revised from 01.01.2006 onwards, a VAT of 24% upon the value of the property shall be imposed at the time of their first sale / transfer by a manufacturer, or by a person who deals professionally with the construction and sale of buildings. In cases where VAT is applicable, the purchaser is not required to pay any transfer tax. The application of VAT on new buildings is currently on suspension until 31.12.2024.
Real Estate Duty ( sic: “TAP” ) This is a special duty imposed upon real estate properties, in favor of the Municipal Authorities. It is calculated by multiplying the value of the property by a rate ranging from 0,25 ο / οο to 0,35 ο / οο . This duty is collected through the Electricity Bills of the property.
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Special Real Estate Property Tax This is a special property tax imposed upon legal entities having their registered seat in countries with a privileged tax regime and possessing full or bare ownership or usufruct of properties located in Greece. Such tax amounts to 15% upon the value of the property. This tax has been imposed in order to deal with the phenomenon of tax evasion of offshore companies possessing real estate property in Greece. Law provides for a number of exemptions from the application of the above tax, depending on the type of company and its statute.
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Important Note: due to frequent legislative amendments in taxation of property, it is strongly recommended that all property related taxes are re-visited and re-calculated before any purchase. b. Annual fiscal obligations of property owners.
Tax on Income from Property Rents Annual income from property rents is taxed by a rate of 15% on the amount of income up to 12.000€, by a rate of 35% for the amount of income between 12.001€ and 35.000€, and by a rate of 45% on any amount above 35.001€. Rents of properties leased for business or professional purposes is surcharged by a stamp duty of 3,6%, which however is usually paid by the lessee, subject to an agreement.
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• Real Estate Property Tax ( sic: “ENFIA” )
Any real estate property located in Greece belonging to individuals or legal entities on the 1 st of January of each year, is burdened with Real Estate Property Tax. This is the major annual tax imposed on real estate properties. Such tax is calculated on the basis of the surface of the real estate property, its location, etc. When it comes to buildings, it ranges from 2,00€ per m2 to 16,20€ per m2, while when it comes to plots of land, it ranges from 0,003 € per m2 to 9,25 € per m2. The Greek Government has applied reductions of 10-30% to such Tax, in proportion to the total value of the real estate properties belonging to the same owner. Such reductions apply from the year 2022 onwards.
Important Note: due to frequent legislative amendments in taxation of property, it is strongly recommended that all property-related taxes are re-visited and re-calculated as need may be.
ILN Real Estate Group – Buying and Selling Real Estate Series
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