GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas Law
by reference to the size, location, zone price, surface, age, use and other characteristics of the property. Following the adjustment of minimum real estate val - ues with effect from 1 January 2022, in March 2022 the Ministry of Finance also introduced amendments to the assumptions and method (the “New Method”) for the calculation of the annual URET, by way of Law 4916/2022. The New Method is not expected to affect low-value real estate properties, but high-value properties are expected to be heavily impacted. With regard to buildings, Law 4916/2022 and Law 5036/2023 provide for changes in the basic tax per tax zone, whereas on plots the law adjusts the tax rate per square metre. An additional tax is being introduced on individuals holding real estate property with a value exceeding EUR400,000 per property and irrespective of joint ownership. This additional tax applies to natural per - sons owning property of value exceeding the amount of EUR300,000. The applicable tax rates with refer - ence to the value of the property are in the range of 0%–1%. URET is payable in ten equal monthly instalments, the first of which is due by the end of the month in which the URET assessment act was issued. Over and above this additional tax, URET on individu - als is further adjusted for real estate property valued at over EUR500,000, in accordance with a progressive scale ranging from 5% up to 20%. Although the recently enacted tax reductions on URET are conducive to a more attractive tax environment, real estate remains heavily taxed in Greece. URET is calculated on the objective minimum value of real estate, as such value is assessed by a formula of the Ministry of Finance. By way of Law 5167/2024, the URET calculated on property owned by credit institutions and loan servic - ers is increased by 100%. This new provision applies for the tax years 20026, 2027 and 2028. Moreover, the
new provision does not apply to property owned by credit institutions and loan servicers but to that leased to third parties for at least a six-month period. Real estate tax reductions A reduction varying from 10% up to 30% applies to real estate tax for natural persons. The main criterion for the rate of the applicable discount is the value of the real estate property, as calculated by the formula set by the Ministry of Finance. Moreover, for the tax years 2025 and onwards, the URET calculated on resi - dences insured by insurance companies registered with the respective registry and owned by natural per - sons is reduced by 20%, provided that their taxable value for the purposes of the imposition of URET does not exceed EUR500,000, and by 10% if it exceeds EUR500,000. Local Real Estate Duty (TAP) is payable to munici - pal authorities at rates varying between 0.025% and 0.035% of the assessed value of the property. SRET The law provides that legal entities that have full property rights, bare ownership or usufruct property in Greece must pay an annual special property tax at 15%; the law sets out a number of exemptions related mainly to the nature of the activity of the legal persons. An exemption is provided for companies that have their headquarters in Greece or another EU country and that are usually SAs with shares registered to individuals or owned by declared individuals with a tax registration number in Greece, or limited liability companies, if the shares are owned by individuals or if the company declares the ultimate individual owners of its shares, provided that these individuals have a tax registration number in Greece. Transfer tax The prevailing real estate transfer tax rate is 3%, cal - culated on the taxable value of the real estate. New constructions with a building licence issued since January 2006 are subject to VAT at 24%. However, the VAT has been suspended until 31 December 2025 and constructors have the option to be subject to real estate transfer tax at a rate of
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