Exemption from real estate transfer tax

The real estate transfer tax is imposed on every transfer for consideration and the buyer is the taxable person [Articles 1 par1 and 2 par.1 of Law 1587/1950, as amended and currently applicable].

The real estate transfer tax rate applicable is 3% on the taxable value of the property [Article 4 par1 of Law 1587/1950 as amended by article 11 of Law 4223/2013].

Furthermore, pursuant to articles 21 et seq. of Law 3842/2010, real estate transfer tax exemption is provided only on the purchase of a “primary main residence”, as follows:

Beneficiaries of the exemption:

The beneficiaries of the above exemption are the following individuals (married or single or individuals entered into a civil partnership), provided that they reside permanently in Greece or they intend to reside permanently in Greece within two (2) years from the purchase date [Article 23 par. 4 and 5 of Law 3943/2011]:

1. Greek nationals,
2. expatriates from Albania, Turkey and former Soviet Union countries,
3. citizens of the EU Member States and the European Economic Area,
4. persons recognized as refugees [Presidential Decree no. 96/2008],
5. third-country nationals who are long-term residents in Greece [Law 4251/2014],
6. third-country nationals holding a second-generation residence permit in Greece.

Please note that if the buyer will reside in Greece within two years starting from the purchase date, she/he shall file a relevant tax return before the competent Tax Office no later than six (6) months after the expiry of the two years deadline and pay the relevant real estate transfer tax.

Scope of the exemption:

Please see the relevant table below:

It also should be noted that since the value of the property exceeds the above tax-free limits, the exemption is granted up to the relevant untaxed amount and for the additional amount, the relevant property transfer tax shall be paid.

Conditions required for the property transfer tax exemption:

• The buyer or his spouse or their children shall not have the right of full ownership or usufruct relating to a house or an apartment or the right of full ownership of a constructible land or an ideal share of land that meets the housing needs of his family and they are located in a municipal apartment with a population of more than 3,000 inhabitants. Their housing needs are satisfied whether the surface of the property is of 70 m² (90 m² in case of an individual with a degree of mental or physical disability of over 67%) increased by 20 m² for each of his first two children and 25 m² for the third and subsequent children.
• The purchased land or the court is constructible at the time of purchase and within the approved urban or community urban plan or within the boundaries of a settlement without an approved plan,
• There is not a blood or first degree marriage relationship between the buyer and the seller.
• The exemption is granted provided that the buyer retains the ownership of the property for at least five (5) years.