The Greek government plans to raise the property transfer tax for non‑EU/EEA natural‑person buyers from the current 3.09 % to 15 %, plus a 3 % municipal surcharge (total 15.45 %). The measure will take effect on 1 July 2027, giving investors already in the process of buying time to complete transactions before the higher rate applies.
Scope and exemptions
- Applicable buyers: natural persons who are citizens of countries outside the European Union and the European Economic Area.
- Exemptions: ethnic Greeks and long‑term residents are excluded from the higher rate.
- Geographic focus: experts suggest the tax should be limited to areas with acute housing pressure (Athens and Thessaloniki) rather than applied nationwide, where many sales are holiday homes.
Tax rates and cost impact
| Property value | Current transfer tax (3.09 %) | New tax (15 % + 3 % surcharge) |
|---|---|---|
| €200,000 | €6,000 | €30,000 |
| €500,000 | €15,000 | €75,000 |
| €800,000 | €24,000 | €120,000 |
The municipal surcharge adds 3 % to the 15 % rate, bringing the effective burden to 15.45 %.
Timeline and legislative process
- The tax increase is part of an omnibus bill that will enter a public consultation within the month.
- Parliament’s term ends in spring 2027; the vote is expected between March and May 2027.
- If passed, the law could be amended or repealed by a new government before it takes effect.
Expert opinions
- Christina Georgaki (Georgaki Law Firm): sees the delayed vote as a way to push the measure past the election, leaving it vulnerable to reversal by a future parliament. She proposes a ceiling at €500,000 so that only lower‑priced properties—those competing with local buyers—are taxed at the higher rate.
- Alexander Varnavas (Varnavas Law Firm): warns a new administration could adopt an even harsher approach. He recommends targeting the tax to high‑pressure housing markets and keeping a middle rate (around 8 %) for other regions.
- Elena Shiapani (MIBS Group): argues that converting idle industrial or commercial buildings into residential units should be exempt, as taxing those investors would contradict the government’s stated goal of revitalising unused stock. She also notes that the minimum investment threshold for the Golden Visa (€250,000) remains unchanged, so the tax increase may not deter demand.
Golden Visa implications
- The Golden Visa program currently requires a minimum €250,000 real‑estate investment.
- Under the current 3.09 % rate, a €250,000 purchase incurs €7,725 in transfer tax.
- After the new rate, the same purchase would cost €38,625 in transfer tax.
- Experts disagree on whether this higher cost will significantly affect demand; some point to Greece’s leading position in the EU’s Golden Visa market, while others note that competition from other member states could become a factor.
Administrative considerations
- The filing bottleneck that previously affected applications—where investors could only submit paperwork in the region of the purchase—is being removed. Applicants can now file through any local office in Greece, reducing the risk of backlogs.
- The consultation draft, due next month, will clarify whether the €250,000 tier falls under the new rate or remains at the current level.
Overall, the proposed tax aims to curb foreign investment in residential real estate, especially in high‑demand urban areas, while preserving incentives for property conversion and lower‑priced purchases. Its ultimate shape will depend on the upcoming parliamentary vote, the outcome of the public consultation, and the political landscape following the 2027 elections.
Source article: www.imidaily.com
