GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas Law
3%.The VAT is expected to be further suspended until 31 December 2026. Exceptionally, the acquisition of a primary residence is exempt from the payment of transfer tax if the pur - chaser, their spouse or a minor child is domiciled in Greece and none of them are entitled to full owner - ship, usufruct or habitation in a residence. These pro - visions apply to contracts for the purchase of property where the purchaser resides in Greece or intends to do so and falls within one of the following categories of beneficiaries: • Greek citizens; • repatriates from Albania, Turkey and the former Soviet Union; • citizens of the member states of the EU and the European Economic Area (EEA); • recognised refugees as defined by Presidential Decree 96/2008; or • third-country nationals who enjoy the status of long-term residency in Greece as defined by Presi - dential Decree 150/2006. This tax exemption is granted to an unmarried individual for the purchase of a residence of up to EUR200,000 and a land purchase of up to EUR50,000. The amount of these exemptions may be increased, depending on the individual’s marital status and num - ber of children as well as certain other considerations. The exemption is dependent on the property not being further transferred by the buyer for a period of at least five years. Inheritance and Gift Tax Inheritance and gift tax are charged and regulated by the Inheritance and Gift Tax Law (IGTL), with ben - eficiaries of the inherited or gifted property (heirs, legatees, shareholders and any persons who acquire property through inheritance) being classified into three categories. Assets acquired through inheritance or donation are subject to tax at a maximum rate of 10% for first-class relatives (spouse, children or grandchildren), 20% for second-class relatives (parents and siblings, then their children or grandchildren) and 40% in any other case.
The law provides for specific exemptions or special tax treatment of specified transactions. For example, the following cases are exempt from Greek inherit - ance tax. • Movable property situated outside Greece and held by a Greek national (citizen) who: (a) has been resident outside Greece for a period of at least ten consecutive years; (b) whose possible relocation to Greece will not exceed a period of five years; and (c) who has not acquired assets in Greece within the last 12 years. • The acquisition by inheritance of ships or partici - pation rights in Greek or non-Greek ship-holding companies, provided that these ships have a total capacity exceeding 1,500 gross registered tonnes. • Funds acquired by way of a gift (donation), other than parental gifts, although subject to tax calcu - lated independently at 10% for first-class heirs and 20% for second-class heirs, are not further taxed along with other gifted (donated) items, and consequently these tax scales do not apply in that case. In the case of death, however, such funds are taxed, along with other inherited items. 1.2 Exemptions See 1.1 Tax Regimes under Tax on Income Acquired Abroad , Capital income, Transfer tax and Inheritance and Gift Tax , and 2.6 Transfer of Assets: Vehicle and Planning Mechanisms . 1.3 Income Tax Planning See 1.1 Tax Regimes under Tax on Income Acquired Abroad , Capital income, Transfer tax and Inheritance and Gift Tax , and 2.6 Transfer of Assets: Vehicle and Planning Mechanisms . 1.4 Taxation of Real Estate Owned by Non- Residents See 1.1 Tax Regimes under Real Estate Taxes . 1.5 Stability of Tax Laws The state of vulnerability that characterises the Greek economy, which is subject to permanent handicaps, makes it more difficult for business activities to devel - op, and in many cases exacerbates their economic difficulties. The current tax framework, especially the
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