Greece and Cyprus are popular tourist destinations that also attract real estate investors. Many factors influence the choice of a country to purchase property, including the tax burden.

In this review, we will compare property taxes in Greece and Cyprus.

Greece

Greece has two main property taxes: an annual property tax (ENFIA) and a transfer tax.

ENFIA is an annual tax that is paid by all property owners in Greece. The tax rate depends on the property's cadastral value and its location. For properties with a cadastral value of up to 250,000 euros, no tax is levied. For properties with a cadastral value of between 250,000 and 2 million euros, the tax rate ranges from 0.15% to 1.15%. For properties with a cadastral value of more than 2 million euros, the tax rate is 1.5%.

The transfer tax is 3% of the property value.

In addition, Greece also has a tax on rental income from property. The tax rate depends on the amount of income and ranges from 10% to 45%.

Cyprus

Cyprus also has two main property taxes: an annual property tax and a transfer tax.

The annual property tax is levied on property owners whose property value exceeds 12,500 euros. The tax rate ranges from 0.5% to 1.9% of the property value.

The transfer tax is 19% of the property value.

Comparison of property taxes in Greece and Cyprus

In general, property taxes in Greece and Cyprus are comparable. However, there are some key differences.

First, Greece has a threshold of 250,000 euros for ENFIA. This means that property owners with a cadastral value below this threshold do not pay tax. Cyprus has no threshold, and all property owners whose property value exceeds 12,500 euros pay tax.

Second, the transfer tax rate in Greece is 3%, while in Cyprus it is 19%. This means that buying property in Cyprus is more expensive than in Greece.

Third, the tax rate on rental income from property in Greece depends on the amount of income. In Cyprus, the tax rate is fixed at 10% to 45%.

Conclusion

Choosing a country to purchase property is a complex process that depends on a variety of factors, including the tax burden. In the case of Greece and Cyprus, property taxes are comparable. However, there are some key differences that should be considered when making a decision.

If you are considering purchasing property in Greece, it is important to factor in that you may not pay the ENFIA tax if the value of your property is below 250,000 euros. However, if you plan to rent out the property, you will need to factor in the tax rate on rental income.

If you are considering purchasing property in Cyprus, it is important to factor in that buying property is more expensive than in Greece. In addition, the tax rate on rental income from property is fixed at 10% to 45%.