Greece is preparing an important change to the taxation of residential property purchases by certain non-EU buyers, with the property transfer tax set to increase from 3% to 15% from 1 July 2027.
The measure was first announced by Prime Minister Kyriakos Mitsotakis at the 90th Thessaloniki International Fair (TIF) as part of the government’s broader housing policy. Subsequent clarifications have provided a clearer picture of which buyers and properties are expected to be affected.
For international investors considering Greece, the key point is that the new rate will not apply to every foreign buyer or every type of real estate transaction.
Understanding who falls within its scope — and how the new rules could interact with investment structure, property type and the Golden Visa programme — is therefore essential when planning a future acquisition.
The transfer tax increase is also part of a broader set of property reforms coming into effect in Greece in 2027, including measures concerning ENFIA, housing and property owners.
The New Property Transfer Tax Framework
Under the current system, the standard property transfer tax in Greece is 3% of the taxable property value. An additional municipal surcharge of 3% is calculated on the transfer tax itself, rather than on the property value. This adds an effective 0.09%, bringing the total burden to 3.09%.
Calculation: 3% × 3% = 0.09% → 3% + 0.09% = 3.09%
Under the proposed framework, the basic transfer tax will rise to 15% for qualifying residential purchases by affected buyers. The same 3% municipal surcharge is calculated on the higher transfer tax, adding an effective 0.45% and bringing the total burden to 15.45% of the taxable property value.
Calculation: 15% × 3% = 0.45% → 15% + 0.45% = 15.45%
The new rate is expected to take effect on 1 July 2027. This implementation date creates a transition period for buyers and transactions already being planned.
Who the 15% Property Transfer Tax Will Apply To
Based on the framework announced so far, the increased rate is intended to apply to individual buyers who are citizens of countries outside the European Union and European Economic Area (EEA), do not fall within the exempt categories identified by the government, and purchase residential property in Greece.
The distinction between an individual and a legal entity is particularly important. The announced measure targets natural persons rather than companies and other legal entities.
Long-term residents and other specified categories are also expected to remain outside the increased rate.
The measure is therefore considerably more targeted than a general 15% tax on foreign investment in Greek real estate.
Why Greece Is Increasing the Property Transfer Tax
The measure forms part of the government’s broader response to pressure on the residential housing market.
The objective is to limit additional demand for residential properties where foreign purchasing activity may contribute to rising prices and make access to housing more difficult for permanent residents.
The policy also responds to concerns raised in some local communities, particularly in Greece’s border regions, regarding extensive property acquisitions by buyers from outside the European Union.
Importantly, the measure targets residential demand rather than foreign real estate investment as a whole.
This distinction helps explain why commercial properties, plots and other non-residential assets are currently expected to remain outside the scope of the increased rate.
Property Purchases Expected to Remain Outside the 15% Rate
Based on the framework announced so far, the increased transfer tax is specifically focused on residential property.
Purchases of commercial properties, professional premises, plots of land and other non-residential real estate are therefore currently expected to remain outside the new 15% regime.
The government has also clarified that the increased rate is intended to apply to individuals rather than legal entities, while expatriate Greeks and qualifying long-term residents are among the categories expected to remain outside the new treatment.
For investors, this makes the legal status of the buyer and the classification of the property at the time of acquisition increasingly important considerations.
As commercial and other non-residential properties are currently expected to remain outside the scope of the increased rate, investors considering this segment can learn more about the commercial real estate market in Greece, including the main property categories and factors to consider when evaluating a commercial investment.
The Financial Impact for Non-EU Property Buyers
For an investor who falls within the scope of the new rules, the difference in acquisition cost could be substantial.
The examples below include the 3% municipal surcharge applied to the property transfer tax itself. This brings the effective tax burden from 3% to 3.09% under the current system and from 15% to 15.45% under the proposed new framework.
€200,000 residential property
Current effective tax (3.09%): €6,180
Proposed effective tax (15.45%): €30,900
Difference: €24,720
€500,000 residential property
Current effective tax (3.09%): €15,450
Proposed effective tax (15.45%): €77,250
Difference: €61,800
€800,000 residential property
Current effective tax (3.09%): €24,720
Proposed effective tax (15.45%): €123,600
Difference: €98,880
These examples illustrate the transfer tax and associated municipal surcharge only. They do not represent the total cost of purchasing property in Greece, which may also include notarial, legal, registration and other transaction-related costs depending on the acquisition.
For affected investors, acquisition taxation will therefore become a much more significant part of calculating the total capital required for a residential investment.
Why the 1 July 2027 Implementation Date Matters
The implementation date creates an important planning window.
For non-EU buyers who are likely to fall within the new rules and are already considering a residential acquisition in Greece, the period leading up to 1 July 2027 may therefore be particularly relevant.
However, investors should not assume that simply beginning a transaction before that date will automatically secure the existing tax treatment.
The final legislation will be important in determining the precise treatment of transactions in progress, preliminary agreements and other transitional cases.
For buyers actively considering a purchase, this makes early preparation particularly valuable. Legal and technical checks, property documentation and the structure of the transaction can all affect the time required to reach completion.
The €250,000 Golden Visa Investment Route and the New Tax
This is one of the most important areas still requiring clarification.
Under the current Golden Visa framework, the €250,000 investment threshold can apply to specific categories of property, including qualifying commercial-to-residential conversions and certain listed buildings subject to the applicable requirements.
These categories are fundamentally different from the straightforward acquisition of an existing residential property.
A project that converts an unused office, commercial building or former industrial property into apartments can create new residential stock, rather than removing an existing home from the housing market.
This distinction is particularly relevant given the stated housing-policy objectives behind the new transfer tax.
For investors considering residency alongside a property acquisition, our trusted partner MBG Consulting Services provides further guidance on how the different Golden Visa property investment thresholds apply, including the special €250,000 category and the €400,000 and €800,000 investment routes.
The key question under the proposed transfer-tax regime is how the 15% rate will interact with these special investment categories, particularly when a property changes its legal use.
Further clarification is therefore required before investors should assume that a particular Golden Visa conversion or restoration project will remain subject to the existing transfer-tax treatment.
What the Change Means for Greece’s Investment Appeal
The change should be assessed in context rather than interpreted as a general increase in taxation for all international property investment.
Its announced scope is targeted: specific individual buyers from outside the EU/EEA purchasing residential property.
Commercial real estate, land and other non-residential assets are currently outside the announced scope, while the proposed framework also distinguishes between individuals and legal entities.
For investors, the development therefore reinforces the importance of choosing the right property type, investment strategy, ownership structure and timing.
It may also bring greater attention to redevelopment and conversion projects that contribute to new property supply, although investors should wait for the final legislation before making decisions based primarily on anticipated tax treatment.
Key Details Still Awaiting Final Legislation
This is perhaps the most important point for prospective buyers.
The announced changes still need to be reflected in the applicable legislation, and additional technical details, exemptions or transitional provisions may emerge during the legislative process.
Among the issues investors should continue to monitor are:
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the precise transitional rules for transactions already underway;
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the treatment of preliminary agreements;
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the treatment of properties undergoing a change of use;
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the interaction with €250,000 Golden Visa investments involving conversions and listed buildings; and
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any additional exemptions or adjustments introduced in the final legislation.
For this reason, investment decisions should be based on the final legal framework and the specific circumstances of each buyer rather than on the headline 15% rate alone.
What International Property Buyers Should Consider Now
For investors already considering a property purchase in Greece, the announcement does not necessarily mean changing investment plans. It does, however, make early planning more important.
Prospective buyers should establish whether the proposed new rate is likely to apply to their circumstances, confirm the legal classification of the property, assess the total acquisition cost under the relevant tax regime and examine whether the timing or structure of the investment requires adjustment.
For buyers planning an acquisition before the new rules take effect, understanding how the property purchase process works in Greece can help when estimating the steps and time required to move from property selection to completion.
Before committing to a property, international buyers should also carry out appropriate legal due diligence, including checks related to ownership, encumbrances, planning documentation and the property’s legal status. For a more detailed overview, read the guide to legal due diligence when buying property in Greece, which provides professional legal guidance for international investors navigating the acquisition process.
This is especially relevant for buyers considering a transaction before 1 July 2027 and investors evaluating properties connected with the Golden Visa programme.
Grekodom: Supporting International Property Investors in Greece
Greece continues to offer international buyers a broad range of opportunities — from residential and holiday properties to commercial real estate, development projects and investments connected with residency programmes.
As the regulatory environment evolves, however, successful property investment increasingly requires more than identifying the right asset.
Taxation, legal status, property classification, investment structure and timing need to be considered together.
At Grekodom, we closely monitor developments affecting international property buyers and investors in Greece and support our clients throughout the property acquisition process.
If you are considering purchasing property in Greece, our team can help you identify suitable opportunities, understand the practical implications of the upcoming changes and coordinate the next stages of your investment.
Planning an investment in Greek real estate? Contact Grekodom to discuss your requirements and explore suitable opportunities in Greece.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal, tax or investment advice. The announced tax changes have not yet completed the legislative process, and their final provisions may differ. Prospective buyers should obtain appropriate professional legal and tax advice based on their individual circumstances before making an investment decision.
