Real Estate Taxes in Greece for Nonresidents

Taxation Researcher | July 05, 2022

If you´re looking to acquire real estate in Greece, it´s best to familiarize yourself with some of the most common taxes related to owning real estate and generating rental revenue. The tax system is quite complex compared to some other countries and is bound to change in the coming years given the state of the economy in 2022.

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 2020

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 2020

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

Greece luxury housesRental 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, €
TAX RATE
Up to €400,000
0%
€400,000 - €2 million
0.20% - 1%
Over €5 million
2%
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.