Greece extends VAT and capital gains tax suspension on property into 2027
Greece's economic team is preparing to extend the suspension of the 24% VAT on new-build properties and the 15% capital gains tax on property transfers into 2027, with a permanent abolition of the latter also on the table.
Background
Greece's government is planning a further extension of key property tax suspensions into 2027, according to reports from multiple Greek media outlets. The measures concern the 24% value-added tax on sales of newly built properties and the 15% capital gains tax on real estate transfers. The latter, though legislated, has never been implemented.
VAT suspension impact
The VAT suspension, first introduced in 2020 and repeatedly renewed, is seen as critical for supporting the construction sector and maintaining investment interest in the real estate market. Under the current regime, buyers pay only a 3% transfer tax on the objective value. For a new apartment priced at €200,000, applying the full 24% VAT would raise the total cost to €248,000, while the suspended situation limits the tax burden to €6,000, yielding a final price of €206,000. The current suspension is set to expire on 31 December 2026.
- With VAT
- 248000 €
- Without VAT
- 206000 €
Capital gains tax status
The 15% capital gains tax on property transfers, applied to the profit between purchase and sale price, is also under review. For example, a property bought at €120,000 and sold at €180,000 would incur a €9,000 tax. However, since its establishment, the tax has been continuously suspended and was never activated. The government is now examining the possibility of permanently abolishing it.
Economic rationale
The primary aims are to preserve the momentum of the property market, support construction activity, and avoid additional transaction burdens. Property prices continue to rise, making housing increasingly difficult for households to afford. By prolonging the suspensions, the government hopes to keep the market moving without new fiscal obstacles.
What's next
Final decisions are expected to be locked in shortly as part of a broader tax relief package to be presented by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair. The extension could last for one or two more years.
