After making a successful investment and familiarizing yourself with the taxes involved in buying property in Greece, the time may come to consider the next step – selling. Realizing a profit is a primary goal for any investor, but it is crucial to understand how that profit is taxed. In Greece, like in many other countries, there is a Capital Gains Tax, which is essential for determining your final return on investment. This guide will walk you through everything you need to know about this tax, how it’s calculated, and when you might be exempt from paying it.
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What is Capital Gains Tax on Property in Greece?
Capital Gains Tax is a levy applied to the difference between the selling price of a property and its acquisition cost, adjusted for certain expenses. In other words, the net profit you make from the transaction is taxed.
As of 2025, the standard rate for this tax in Greece is 15%. It’s important to note that determining the exact tax amount involves more than just subtracting the purchase price from the sale price. Specific adjustments must be applied, and all legally recognized expenses must be deducted. Correctly calculating the capital gains tax Greece is key to avoiding overpayment and optimizing your tax burden.
Formula and Key Components for Calculation
To understand how the tax liability is formed, we must look at the basic elements of the formula.
Taxable Capital Gain = Selling Price – (Acquisition Cost + Deductible Expenses)
Let’s break down each component:
Selling Price
This is the official price at which the property is sold, as recorded in the notarial deed of sale.
Acquisition Cost
This is the value at which you originally purchased the property. It includes not only the price paid to the seller but also the initial acquisition costs, such as the paid property transfer tax (typically 3.09%). Keep all documents from the original transaction, as they are the basis for the calculations.
Recognized Deductible Expenses
This is the most critical part for optimizing your tax. Greek law allows you to deduct a range of expenses you incurred during the ownership and sale of the property. These include:
- Renovation and Improvement Costs: All expenses for major renovations or improvements that have increased the property’s value can be deducted. It is mandatory to have official invoices (τιμολόγια) for the work and materials.
- Notary Fees and Sale Costs: The fees paid to the notary for drafting the sale contract.
- Legal Fees: The costs for the lawyer who represents you during the sale transaction.
- Real Estate Agent Commission: The commission paid to the real estate agency that mediated the sale.
Collecting and retaining all documentation for these expenses is extremely important. Without official documents, the tax authorities will not recognize them.
Capital Gains Tax Exemption: The Key 5-Year Rule
One of the most important aspects of the capital gains tax Greece is the existence of exemptions. As of 2025, a key relief for investors is in effect:
If you have owned the property for a period longer than five (5) years, you are completely exempt from paying capital gains tax.
This five-year period starts from the date of signing the notarial deed of purchase to the date of signing the notarial deed of sale. This provision makes long-term property investments in Greece particularly attractive, as it allows the entire capital gain to remain with the investor, provided the property is held long enough.
Practical Calculation Example
Let’s imagine you bought an apartment in Greece 3 years ago and are now selling it.
- Acquisition Cost: €120,000 (including all purchase fees)
- Renovation Costs (with invoices): €10,000
- Selling Price: €160,000
- Sale Costs (notary, lawyer, agent): €8,000
Calculation:
- Total Acquisition Cost and Expenses: €120,000 + €10,000 + €8,000 = €138,000
- Gross Capital Gain: €160,000 (Selling Price) – €138,000 (Total Costs) = €22,000
- Tax Due (15%): 0.15 * €22,000 = €3,300
In this scenario, the due capital gains tax is €3,300. However, if the same property were sold after being owned for more than 5 years, the tax due would be €0.
Procedure and Advice
The declaration of capital gains and payment of the tax is done through the annual tax return. The process can be complex, so it is highly recommended to use the services of a local accountant who is familiar with real estate tax legislation. They will help you prepare the documents correctly and take advantage of all legal opportunities to reduce your tax base. For up-to-date and detailed information, always consult official sources such as the Greek Independent Authority for Public Revenue (AADE).
Understanding the capital gains tax Greece mechanism is just as important as analyzing the property market trends in Greece. Properly planning your exit strategy can significantly increase your net profit and turn your investment into a true success.
This post is also available in: Български
