GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
projects such as schools or churches, and urban plan - ning expropriation, which occurs as part of broader urban development, such as creating city plans or opening roads. The procedure aims to promote pub - lic interest and typically involves the following steps: • Declaration of public interest: The government must declare the project as serving a public inter - est. • Notification : Affected landowners are notified of the intention to expropriate their property. • Valuation: An assessment of the land’s value is conducted to determine compensation. • Compensation offer: The government offers com - pensation based on the valuation. • Legal proceedings : If disputes arise, landowners can appeal the compensation amount in court if they believe it is insufficient. 2.10 Taxes Applicable to a Transaction Real estate transactions are subject to several taxes, most notably a 3.09% transfer tax on the property’s assessed value or the purchase price, whichever is higher. The transfer tax is paid by the buyer just before signing the notarial deed, along with the submission of the tax declaration. In share deals, any income derived from the capital gain on the transfer of the shares is subject to capital gains tax borne by the transferor. Partial ownership transfers also incur taxes. Specific categories of individuals are eligible for a tax exemp - tion, provided that the property is solely used as their primary residence. 2.11 Legal Restrictions on Foreign Investors In Greece, there are limited legal restrictions on foreign investors acquiring real estate. Under Law 1892/1990, as in force, the acquisition of real estate located in designated border areas or mili - tary zones by non-EU/EEA investors is subject to prior administrative authorisation; transactions concluded without such approval are void. In addition, on 11 November 2025, Greece advanced its foreign direct investment (FDI) policy with the issu -
ance of the Joint Ministerial Decision No 64260/2025 (Government Gazette B’ 6009/2025) (the “Ministerial Decision”) which defines the procedure, form, and key documentation required for screening applications under Law 5202/2025 (the “FDI Law”), aligning Greece with the EU framework on FDI control established by Regulation (EU) 2019/452. In particular, a foreign direct investment (FDI) screen - ing mechanism applies on grounds of security or public order. While this does not directly restrict real estate acquisitions as such, it may be relevant where the acquisition forms part of an investment in a com - pany owning or operating assets in sensitive sectors (including minority interests) as follows: • in sensitive sectors (energy, transport, health, infor - mation and communication technologies, and digi - tal infrastructure), screening is triggered where the foreign investor acquires at least 25% of the target undertaking, as well as upon subsequent increases to 30%, 40%, 50% and 75%; and • in particularly sensitive sectors (including defence and national security, dual-use items, military equipment, cybersecurity, artificial intelligence, port infrastructure, critical subsea infrastructure, and tourism infrastructure in border regions), screen - ing is triggered from a lower threshold of 10%, and upon increases to 20%, 25%, 30%, 40%, 50%, 60%, 70% and 75%. Accordingly, where a real estate acquisition is linked to such sectors, FDI screening and approval require - ments may apply. Outside these specific cases, there are no general restrictions on foreign ownership of real estate in Greece. It is noted that the issuance of a Greek tax identification number for the acquirer is required to complete an asset transaction. 3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate In Greece, acquisitions of commercial real estate are financed through a variety of channels, including the
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