Greek Business Law
A Handbook for Businesses and Legal Practitioners
9
Issues in Civil Law
3.4. Taxation of real property
subsequent transfer, following the first transfer or a transfer after three years
fromconstruction, is not subject to GreekVAT but to Real EstateTransfer Tax.
Notwithstanding acquisitions of newly built buildings subject to Greek VAT, the
remainder of real estates is subject to Real Estate Transfer Tax at the following
rates (art. 4, Statute 1587/1950):
• 8% tax calculated on the first €20.000 value of the real estate and
• 10% tax on the excess.
Real Estate Transfer Tax is calculated on the objective value or the agreed con-
tract price, whichever is higher. It burdens the buyer and is paid in the name of
the buyer before the signing of the deed of sale. Once paid, the tax authorities
issue a certificate that the tax has been verified and settled, which is filed with
the notary public at the time of execution. A local authority surcharge, equal to
7,5%of the transfer tax, is also charged (art. 4, Statute 1587/1950).
3.4.2. Real estate tax
Real estate owned on 1 January of each year is subject to real estate tax. The tax
is imposed annually and the taxable value of buildings is determined according
to the“objective value system”.
The tax rates differ for individuals and legal entities:
• For legal entities, real estate tax is calculated at a flat rate of 0.6% and at the
rate of 0.1% for buildings that are used for the purposes of the legal entity
(art. 35, Statute 3842/2010).
• For individuals, real estate tax is calculated on a sliding scale as follows: (i)
the first €200,000 are tax-free; (ii) the remainder is subject to real estate on
a sliding scale from0.2% to 1% (art. 36, Statute 3842/2010).
3.4.3. Special tax on real estate
Greek law has a special law to deter investors frompurchasing real estate in the
name of foreign companies that are intended to conceal the identity of the in-
vestor. In particular, legal entities owning property in Greece are charged with
a special annual tax at the rate of 15% calculated on the value of the real es-
tate, unless one of the exemptions provided in the law apply (art. 15, Statute
3091/2002). In particular, companies that have their registered office in Greece
or in another EU country are also exempt from this special tax, provided they
are among others: (i) corporations (SA) which have registered shares in the
name of individuals (physical persons) or which declare the individuals who are
the ultimate owners, provided that these individuals have been awarded with
