At the Thessaloniki International Fair, Greek Prime Minister Kyriakos Mitsotakis announced a sweeping housing package slated to take effect in 2027. The reforms aim to ease domestic housing pressures, curb excessive foreign demand on residential stock, and revitalize smaller and remote communities across the country.
15% Property Transfer Tax for Non-EU Buyers
Starting in 2027, the property transfer tax for non-EU citizens buying residential real estate in Greece will surge from the current rate of 3.09% (including municipal surcharges) to 15% of the purchase price.
Core rules of the upcoming tax measure:
- Property Scope: Applies exclusively to residential real estate (apartments, detached houses). Commercial premises, plots of land, and other asset classes remain subject to standard tax rates.
- Legal Status: Targets transactions conducted by individuals, not corporate entities.
- Exempt Buyer Categories: Citizens of the European Union, the European Economic Area (EEA — Iceland, Liechtenstein, Norway), and long-term legal residents of Greece remain exempt and will continue paying standard rates.
- Timing: Real estate purchases legally completed before the 2027 effective date will benefit from the current 3.09% transfer tax rule.
ENFIA Annual Property Tax Exemption Expansion
Beginning in 2027, more homeowners in rural, border, and island communities will enjoy a complete waiver of Greece’s annual property tax (ENFIA).
The population eligibility thresholds will increase as follows:
- Nationwide: Expanded to settlements with up to 2,000 residents (up from 1,500).
- Western Macedonia and designated border zones: Expanded to settlements with up to 2,200 residents (up from 1,700).
This policy adjustment encompasses 131 additional municipal settlements and approximately 62,000 residential units across mainland Greece, outlying islands, and specific local districts on high-profile islands including Rhodes, Mykonos, and Santorini.
Tax Incentives for Vacant Homes and Continued VAT Freeze
To curb rising rental costs and replenish the supply of primary residences, Greece has outlined multiple tax and development incentives:
- Three-Year Rental Income Tax Exemption: Homeowners returning long-vacant properties to the long-term residential rental market will receive an exemption from rental income tax for 36 months.
- Renovation Write-offs: Financial and tax deductions will be granted for building modernization and thermal upgrades.
- Continued VAT Moratorium: The 24% VAT exemption on newly constructed properties remains in effect to stimulate new residential development.
- Short-Term Rental Caps: The moratorium on issuing new short-term rental licenses (e.g., Airbnb) will remain enforced across three central municipal districts of Athens and the 1st District of Thessaloniki.
"My Home III" (Spiti Mou III) Housing Program
Launching in early 2027 with an allocated budget of €2 billion, the third installment of the "My Home" program will help an estimated 17,000 to 20,000 households secure low-cost mortgages for primary residences.
Expanded Eligibility and Loan Conditions:
- Maximum applicant age raised from 50 to 55 years.
- Maximum eligible property value raised from €250,000 to €300,000.
- Maximum borrowing limit increased from €190,000 to €230,000.
- Financing covers up to 90% of the property value: 50% is an interest-free loan funded by the Greek state, while the remaining 50% is provided via participating commercial banks.
- Surface area limit remains 150 sq. m, with extensions allowed for households with more than four children.
- Applicable solely to primary residences. Holiday homes, secondary retreats, and purely commercial investment assets do not qualify.
Annual Income Caps:
- Single, divorced, or widowed applicants: up to €25,000.
- Married couples or civil partners: up to €35,000 (+ €7,000 per dependent child).
- Single-parent families: up to €39,000 (+ €7,000 for each additional child beyond the first).
Strategic Takeaways for Buyers and Investors
The planned 15% transfer tax will substantially increase acquisition costs for non-EU individual buyers (including British, American, Middle Eastern, and non-EU European buyers). Finalizing planned residential acquisitions before the 2027 implementation date will yield major tax savings.
Meanwhile, the expansion of the ENFIA zero-tax threshold makes owning property in smaller settlements and regional tourist islands significantly cheaper over the long term, offering compelling holding-cost advantages for secondary homes and local retreats.
Frequently Asked Questions (FAQ)
- When will the 15% transfer tax take effect in Greece?
- The measure is slated to come into force in 2027. Transactions completed prior to this implementation date remain subject to the standard 3.09% rate.
- Does the 15% tax apply to commercial property or land?
- No. The 15% property transfer tax applies exclusively to residential units acquired by non-EU individuals. Commercial premises and land plots are excluded.
- Are EU and EEA citizens subject to the new tax hike?
- No. Citizens of EU member states, EEA countries (Norway, Iceland, Liechtenstein), and certified long-term tax residents of Greece remain under standard taxation guidelines.
Disclaimer: This publication is for general informational purposes only and does not constitute formal legal or tax advice. For specific transactions, always consult an authorized legal practitioner, licensed real estate notary, or certified accountant in Greece.
