Understanding Greece’s property tax system is essential for every homeowner and real estate investor. With ongoing legislative changes—especially in ENFIA, property transfers, and rental income taxation—staying informed can help you avoid surprises and make smarter decisions regarding your assets.
1. ENFIA: The Annual Property Tax in Greece
ENFIA is imposed every year on all properties held on January 1st. It is calculated based on various factors including the location, size, floor level, age, and the use of each property.
Main & Supplementary Tax
- All property owners pay the main ENFIA tax.
- If the total taxable value of your properties exceeds €500,000, a supplementary tax may apply.
2025 Discount for Insured Properties
If your residential property is insured for natural disasters (earthquake, fire, flood), you may qualify for a tax reduction:
- 20% reduction for property values up to €500,000
- 10% reduction for values exceeding that amount
Calculation for 2025
ENFIA for 2025 will be based on the same Objective Values used the previous year.
2. Taxes When Buying or Receiving Property
Property transfers—whether through purchase, donation, parental gift, or inheritance—fall under different tax rules.
A. Purchasing Property
Property Transfer Tax (3.09%)
A 3.09% tax is applied to the taxable value of existing (non-new) properties not subject to VAT.
VAT on New Constructions (24%)
VAT applies to newly built properties with permits issued after 2006. However, VAT is currently suspended until the end of 2025, making most new-build purchases subject to transfer tax instead.
B. Donation, Parental Gift & Inheritance
These transactions are taxed based on family relationship and the taxable value of the property. Each category follows its own scale and exemptions.
3. Rental Income Taxation
Whether you rent out long-term or short-term, your rental income is taxed progressively:
- Up to €12,000: 15%
- €12,001–€35,000: 35%
- Above €35,000: 45%
Upcoming Change in 2026
A new 25% tax bracket for income between €12,001 and €24,000 will be introduced to create smoother progression between the lower and higher rates.
Short-Term Rentals (Airbnb-style)
- Renting up to 2 properties without offering additional services → taxed as regular rental income.
- Renting 3 or more properties, or providing hotel-like services → considered business activity, taxed under business rules and subject to VAT (commonly 13%).
Conclusion: What Property Owners Should Keep in Mind
- ENFIA remains the central recurring tax for all property owners.
- Transfer taxes vary depending on the type of transaction and whether VAT exemption applies.
- Rental income taxation is progressive, with significant updates scheduled for 2026.
Staying updated on these rules helps you make informed decisions, optimize your tax burden, and manage your real estate portfolio effectively.
How We Can Help
Navigating Greece’s property tax system can be complex, but you don’t have to do it alone. We can provide expert advice, explain how the latest rules apply to your situation, and help you plan your next real estate move with confidence.
For more information, please contact us at accounting@grekodom.gr
