The acquisition of real estate in Greece is subject to various taxes, each governed by distinct provisions. These taxes must generally be settled before the contract is concluded.
The real estate transfer tax (Foros Metavivasis Akinitou, F.M.A.) arises only upon notarization of the sale contract. Notably, no transfer tax is due in cases such as notarization of a preliminary contract.
To calculate the transfer tax, the purchase price stated in the contract is used. However, in the past, lower prices were often declared in contracts (so-called under-declaration). To prevent tax evasion, the Greek legislator introduced an objective valuation system.
If the price declared in the contract is lower than the objective value determined by the tax authorities for the specific property, taxation is based on the higher objective value.
The Objective-Value System
The objective-value system establishes minimum property values according to specific criteria, including:
- Location of the property (zone value)
- Property area
- Floor (for apartments)
- Facade length (for shops)
- Availability of heating systems or elevators
Historically, objective values were often significantly lower than actual market prices, in some areas by multiples. Over time, repeated increases have narrowed these differences. A reduction of objective values was implemented in 2018 to reflect market conditions more accurately.
Since March 2023, all real estate acquisitions are subject to the real estate transfer tax (F.M.A.), calculated on the basis of either the contract price or the objective value, whichever is higher.
Real estate transfer tax – FMA
Transfer tax is due on every (onerous) acquisition of real estate or acquisition of in rem rights in real estate (Article 1 of Law 1587/1950) insofar as VAT does not apply. Transfer tax is based on the purchase price stated in the contract, except where that price is lower than the objective value, in which case the objective value applies. The taxpayer is the buyer, who must pay the amount due to the competent tax office before notarization of the acquisition.
The transfer‑tax rate is 3.09%.
Law 1078/1980 provides an exemption from transfer tax if certain conditions on the buyer’s side are met. In particular, an exemption applies where spouses acquire the entire property as full owners and neither the buyer, the spouse, nor any minor child has full ownership, usufruct, or a right of habitation in another house or apartment that can meet the family’s housing needs. This also applies where none of the above has full ownership of a buildable plot or ideal share of a plot that, by area, meets their housing needs and is located in a city/municipality with more than 3,000 inhabitants.
The exemption amounts are: EUR 200,000 for single persons and EUR 250,000 for married persons. The amount increases by EUR 25,000 for each of the first two children and by EUR 30,000 for each additional child. For the purchase of plots, the exemption is EUR 50,000 for singles and EUR 100,000 for married persons, plus EUR 10,000 for each of the first two children and EUR 15,000 for each additional child.
(As of March 2023. All information provided without guarantee.)