GREECE Trends and Developments Contributed by: Panagiotis (Notis) Sardelas, Fay Vetouli and Lydia Dimakopoulou, Sardelas Petsa Law Firm
registered property other than their own, such as lawyers and notary publics. Real Estate Market Involved parties The parties involved in a real estate transaction, in addition to the buyer and seller and the buy- er’s finance provider, are as follows: • The real estate agent, who introduces the interested parties. • The lawyers, who assist both the seller and the buyer in the due diligence process, the issuing of the documentation needed for the signing of the title deed and the drafting of the title deed. • The civil engineer, who provides the seller with energy efficiency certification, as well as certification that the property is free from unauthorised constructions and/or usages. • The competent tax office, where the buyer pays the transfer tax and is provided with the tax declaration. • The notary, who executes the notarial title deed and checks the validity of the documen - tation compiled. • The competent Land Registry or Cadastre Office, where the registration of the notarial title deed takes place for the establishment of the transaction. Taxation Transfer tax Under Greek law, the transfer of real estate is subject to a transfer tax at a rate of 3.09%, cal - culated based upon the value of land, taking into consideration the highest value between the fair market value and the objective tax value. The transfer tax is paid just before the buyer signing the notarial title deed, which is then pro - vided with the tax declaration.
However, for certain categories of natural per - sons, the law provides a tax exemption, under the condition that the property will be strictly used as a first residence. VAT Transfer of real estate, taking place for the first time after its construction, is subject to VAT of 24% upon the price of the sale, if the building permit has been issued from 2006 onwards. Application of VAT, however, has been suspend - ed until 31 December 2024. As things stand, from 2025 the government has the option to reduce VAT on real estate from 24% to 13% and even zero VAT from 2025. Due to the suspension of VAT, the issuance of new private building permits has increased, because the suspension is a very important incentive to the construction industry and investors wishing to invest in the Greek real estate market. Other taxes A tax on capital gains is imposed on the sale of property that is being sold within five years from its acquisition. The tax is 15% of the gain pro - duced by the sale (difference between the sale price and acquisition price). Application of this tax has, however, been suspended by law until Before the completion of the transfer, it is advis - able for the buyer to be informed of the amount of the property tax that is paid annually for the real estate. Leases of Business Premises Main laws that regulate leases of business premises The main laws regulating leases of business premises in Greece are the Hellenic Civil Code and Presidential Decree 34/1995, as amended 31 December 2024. Further tax issues
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