In Greece, property tax, or “immovable property tax” is based on the value of the property and is paid annually. The tax rate varies depending on the region and the type of property. For example, in Athens, the tax rate for a house or apartment is 0.03%, while in other regions it may be lower.
Capital Gains Tax (CGT)
When a property is sold, the capital gains made from the sale are subject to CGT. The CGT rate in Greece is 30%. However, there is a 50% reduction on the CGT for properties that are held for more than 5 years.
In Greece, inheritance tax is imposed on the transfer of assets upon death. The rate of inheritance tax varies depending on the relationship between the deceased and the heir. For example, the tax rate is lower for children and spouse than for other relatives.
Gift tax in Greece is imposed on gifts given during a person’s lifetime. The rate of gift tax varies depending on the value of the gift and the relationship between the giver and the receiver.
Tax on Property Income
In Greece, rental income from property is subject to tax. The tax rate is 20%, and a flat rate of 20% applies to the tax on property income.
Tax Advantages in Buying a House in Greece:
- The 50% reduction on CGT for properties held for more than 5 years
- Tax relief on home improvement expenses
- Tax relief for properties that are used as a main residence