GREECE Trends and Developments Contributed by: Notis Sardelas, Fay Vetouli and Lydia Dimakopoulou, Sardelas Petsa Law Firm
Taxation of Real Estate Transfer tax and VAT
The lawyer’s certification, issued after such due dili - gence, is widely accepted as evidence of ownership in transactions. Digitalisation and Modern Developments Recent years have seen significant progress in the digitalisation of property registration processes. Cadastral Offices now provide electronic services, including online access to records and digital sub - mission of documents. This shift was accelerated by the COVID-19 pandemic, which necessitated remote procedures. Nevertheless, full digital integration has not yet been achieved across all regions, and traditional Land Reg - istries continue to operate in parallel with more mod - ern systems. Access to Information Access to registry records is generally open to profes - sionals involved in real estate transactions. Individuals may access information relating to their own proper - ties through secure digital platforms, while broader access is restricted to authorised users. Real Estate Transaction Key participants and their roles Real estate transactions in Greece involve multiple actors, each contributing to the validity and effective - ness of the process. These include: • real estate agents, who facilitate negotiations between parties; • lawyers, who conduct due diligence and ensure legal compliance; • civil engineers, who certify the technical and legal status of the property; • notaries, who formalise the transaction through an official deed; • tax authorities, which oversee the payment of applicable taxes; and • registry authorities, responsible for recording the transaction The involvement of these professionals reflects the formal and structured nature of property transactions in Greece.
The transfer of property is generally subject to a tax of 3.09%, calculated on the higher of the market value and the objective tax value. Payment of this tax is a prerequisite for executing the notarial deed. In certain cases, particularly for newly constructed properties, VAT at a rate of 24% may apply instead of transfer tax. However, this regime has been temporar - ily suspended under specific conditions. Capital Gains and Ongoing Tax Capital gains from the sale of property may be subject to taxation, although the application of such taxes has been temporarily suspended. Property owners are also subject to recurring annual taxes, which vary depending on the characteristics and value of the property. Leasing Regimes Commercial leases Commercial leases are governed by a flexible frame - work that allows parties to tailor their agreements while maintaining certain statutory protections. Key features include a minimum duration of three years, provisions for rent adjustment, and rules governing subleasing and maintenance obligations. Taxation of rental income depends on whether the landlord is an individual or a legal entity, with different regimes applying in each case. Residential leases Residential leases are subject to similar principles but are designed to provide greater protection to ten - ants. The minimum duration is three years, and spe - cific rules govern rent adjustments, termination, and allocation of costs. Termination procedures are structured to balance the rights of landlords and tenants, with both judicial and expedited mechanisms available.
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