Real Estate Taxes in Greece for Nonresidents
Taxation Researcher | January 13, 2023
Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 22% | 37% | 41% |
| Click here to see a worked example | |||
| Source: Global Property Guide | Disclaimer | ||
INDIVIDUAL TAXATION
Nonresidents in Greece are taxed on their Greek-sourced income. Married couples are taxed separately, but some modifications are applicable. Nonresidents are allowed to avail of deductions and credits, if they are residents of EU member states, and 90% of their worldwide income is from Greek sources.
INCOME TAX
Nonresidents in Greece are liable to pay taxes on their income from Greek sources. Taxable income includes (1) employment income, (2) professional income, and (3) investment income. The taxable income is generally an aggregate of all kinds of income, less income-generating expenses and applicable deductions.
INCOME TAX ON EMPLOYMENT AND PENSIONS INCOME |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €10,000 | 9% |
| €10,000 - €20,000 | 22% on band over €20,000 |
| €20,000 - €30,000 | 28% on band over €30,000 |
| €30,000 - €40,000 | 36% on band over €30,000 |
| €30,000 - €40,000 | 44% on all income over €40,000 |
| Source: Global Property Guide | |
INCOME TAX ON BUSINESS AND PROFESSINAL INCOME |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €10,000 | 9% |
| €10,000 - €20,000 | 22% on band over €20,000 |
| €20,000 - €30,000 | 28% on band over €30,000 |
| €30,000 - €40,000 | 36% on band over €30,000 |
| Over €40,000 | 44% on all income over €40,000 |
| Source: Global Property Guide | |
RENTAL INCOME TAX
Rental income earned in Greece is taxed at progressive rates, from 15% to 45%. Income-generating expenses are deductible from the gross income. Instead of itemized deductions, taxpayers can avail of standard deductions: 40% for income-generating expenses (with supporting invoices) and 10% for depreciation.
INCOME TAX ON REAL ESTATE |
|
| TAXABLE INCOME, € | TAX RATE |
| Up to €12,000 | 15% |
| €12,000 - €35,000 | 35% on band over €12,000 |
| Over €35,000 | 45% on all income over €35,000 |
| Source: Global Property Guide | |
CAPITAL GAINS TAX
Capital gains derived from selling real estate property are taxed at a flat rate of 15% on properties that you have owned for less than 5 years. For real estate owned more than 5 years, the gains are not taxed. Taxable capital gains are calculated as selling price less acquisition costs and related expenses.
PROPERTY TAXES
STATE REAL ESTATE TAX (ENFIA)
State real estate tax is imposed annually on natural and legal entities that possess Grecian property. The principal tax base is calculated from the property´s price zone, year of construction, floor space, usage and other qualities. A large proportion of the principal tax will come from the zone tax rates (see table below)
ENFIA ZONE TAX RATES |
|
| ZONE VALUE, €/m2 | TAX RATE €/m2 |
| 0-750 | 2.00 |
| 751-1,500 | 2.80 |
| 1,501-2,500 | 3.70 |
| 2,501-3,000 | 4.50 |
| 3,001-3,500 | 7.60 |
| 3,501-4,000 | 9.20 |
| 4,001-4,500 | 11.10 |
| 4,501-5,000 | 13.40 |
| >=5,0001 | 16.20 |
| Source: Global Property Guide | |
In addition, ENFIA has as supplementary tax base calculated as the objective property value on 01 January as assessed by the tax authorities. Properties owned by individuals are taxed at progressive rates (see table below).
PROPERTY TAX |
|
| PROPERTY VALUE, € | |
| Up to €400,000 | |
| €400,000 - €2 million | |
| Over €5 million | |
| Source: Global Property Guide | |
LOCAL REAL ESTATE DUTY (TAP)
Local real estate duty is payable to the municipal authorities. The rate varies between 0.025% and 0.035% of the assessed value of the property.