GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
8.5 Tax Benefits By virtue of Article 24 of Law 4172/2013 (Greek Income Tax Code), the acquisition cost of real estate property, excluding the acquisition cost for the plot of land on which it has been erected, is deductible from the taxable income of the entity at an annual rate of 4%.
on property size and usage, while TAP is a small per - centage of the property’s objective value. Exemptions apply to public buildings, religious institutions and non-profit organisations. Additionally, businesses in special economic zones or involved in public interest activities may benefit from reduced rates or exemp - tions. Municipalities set rates independently, so tax burdens may vary by location. Proper classification of premises helps optimise tax liabilities. 8.4 Income Tax Withholding for Foreign Investors In Greece, foreign investors are subject to withhold - ing tax on dividends (5%) and interest (15%), subject to double taxation avoidance treaties. Rental income is taxed at progressive rates for individuals, namely 15% (for annual rental income of up to EUR12,000), 25% (for the part of annual rental income exceeding EUR12,000 and up to EUR24,000), 35% (for the part of annual rental income exceeding EUR24,000 and up to EUR35,000) and 45% (for the part of annual rental income exceeding EUR35,000), while corporate income tax of 22% applies to the taxable income of any real estate entity. Capital gains tax on real estate disposals is currently suspended for individuals, but corporate income tax of 22% applies on gains from the disposition of real estate properties by companies.
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