Speaking at the 90th Thessaloniki International Fair, the Prime Minister of the Hellenic Republic announced a new housing package, marking a fundamental shift in the approach to attracting foreign capital into the real estate market. At the core of the measure is an increase in the property transfer tax from the current rate of 3% to 15% for purchasers who are nationals of third countries (i.e. countries outside the EU and the EEA).
According to the measures announced, the fivefold increase in the tax rate will not apply across the board to all real estate acquisitions but will specifically concern the acquisition of residential property by natural persons who are nationals of countries outside the European Union. Greek expatriates and third-country nationals holding long-term resident status in Greece will be exempt from its scope, while commercial properties, plots of land and industrial premises will also fall outside the scope of the measure.
The measure, which is expected to enter into force on 1 July 2027, is intended to curb speculative demand and ease pressure on residential property prices for Greek citizens. Under this strongly deterrent measure, the property transfer tax will increase to 15% of the value of the property (i.e. the purchase price where this exceeds the property’s objective value; otherwise, the objective value will apply). Together with the additional tax levied in favour of municipalities, the total tax burden will therefore amount to 15.45%, compared with 3.09% currently.
Although the increase in the property transfer tax has been officially announced, its final legal form will be incorporated into the omnibus bill containing the other measures announced at the Thessaloniki International Fair, which is expected to be submitted for public consultation within the next month. Accordingly, until the consultation process has been completed and the bill is formally submitted to the Greek Parliament, there remains scope for amendments, exemptions and other specific refinements.
