Greece Will Increase the Property Tax for Foreigners Fivefold

Greece is preparing to significantly increase the cost of purchasing residential real estate for citizens of countries outside the EU and the EEA. The property transfer tax for such buyers is set to rise from 3% to 15%, which could add tens of thousands of euros to the cost of the transaction. Learn more about the new rules, the timeline for their implementation, and exactly who will be affected by the increase

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Greece plans to sharply increase the tax on residential real estate purchases by third-country nationals in 2027. The base rate will rise from 3% to 15%, which will significantly increase costs for foreign buyers. The reform will be part of a broader government policy aimed at curbing foreign demand for housing and protecting housing affordability for local residents.

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How will the tax on residential property purchases in Greece change?

Currently, the base rate for the real estate transfer tax in Greece is 3% of the property’s taxable value. An additional municipal surcharge of 3% of the tax itself is levied, bringing the effective tax burden to approximately 3.09%.

For third-country nationals subject to the new regime, the tax rate on the purchase of residential real estate will rise to 15%. Taking the municipal fee into account, the effective tax rate will reach approximately 15.45%. Thus, the tax burden will effectively increase fivefold.

Importantly, the new rate will apply specifically to residential properties. The government’s clarification explicitly states that the increase does not apply to commercial properties, land plots, or other types of real estate. The new regime is scheduled to take effect in 2027.

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Who will pay the higher tax?

The higher rate will not apply to all foreign buyers, but primarily to citizens of countries outside the EU or the EEA. This means that for most buyers from third countries, purchasing a home in Greece will become significantly more expensive.

At the same time, there are exceptions. The new regime will not apply to Greek citizens, citizens of other EU and EEA countries, or certain categories of foreigners with protected or long-term residency status. The exact list of exempt categories will be determined by legislation and accompanying guidelines.

For foreign investors, the key factor will be not only citizenship but also the buyer’s specific status at the time of the transaction. Therefore, before purchasing real estate, it is advisable to verify whether the buyer falls under the new 15% rate or if the current standard regime applies.

In our previous article, we discussed, why small apartments in Greece are becoming more attractive to investors and buyers.

How much more expensive will buying real estate become?

The rate increase from 3% to 15% means that additional costs for a foreign buyer could rise by tens of thousands of euros. The tax is calculated based on the taxable value of the property, and when the municipal surcharge is factored in, the effective rate for buyers from third countries will be approximately 15.45% instead of the current 3.09%.

For example, if we apply these rates to the cost of a home, the difference would look like this:

- €200,000: currently about €6,180 in tax; after the reform—about €30,900

- €300,000: approximately €9,270 versus €46,350

- €500,000: approximately €15,450 versus €77,250

- €800,000: approximately €24,720 versus €123,600

Thus, for an apartment or house valued at €300,000, the tax burden could increase by approximately €37,080, and for a property valued at €500,000—by €61,800. This already has a significant impact on the overall budget of the transaction, especially when you factor in notary fees, registration fees, legal services, and other closing costs.

At the same time, these calculations are approximate: the actual tax base for a specific property may differ from its declared market price. Therefore, buyers should evaluate the new rate not in isolation, but as part of the total cost of purchasing real estate in Greece.

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Why is Greece raising the tax for foreign buyers?

The Greek government directly links the new tax rate to the situation in the housing market. According to the official explanation, high demand from buyers in third countries is driving up prices and making it harder for the country’s permanent residents to access real estate. That is why the 15% tax is being introduced as a tool to curb external demand.

The increase is not a standalone measure. It is part of a broader housing policy package, which also includes:

- An extension of restrictions on new short-term leases in certain areas of Athens and Thessaloniki through 2027

- The continuation of tax incentives for owners of vacant housing units who return them to the long-term rental market

- The preservation of tax breaks for the modernization and renovation of buildings

- The continuation of the VAT exemption for new construction

- The launch of the new “Spiti Mou III” program with €2 billion in funding to support first-time home purchases

The logic behind the reform is clear: the government is attempting to simultaneously curb some of the investment demand and increase the supply of affordable housing for people who live in Greece permanently. Therefore, the new tax should be viewed not merely as a fiscal change, but as part of a comprehensive response to the country’s housing crisis.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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