Greece’s capital gains tax on property is a 15% flat tax on the profit from individual property sales under Article 41 of the Income Tax Code, but its collection has been suspended since it was enacted in 2013. Law 5162/2024 extended the suspension through December 31, 2026, so individuals selling residential or commercial property in Greece currently owe zero capital gains tax on the profit.1Independent Authority for Public Revenue. Property Capital Gains Tax The tax still sits in the code, though, and the rules matter for corporate sellers, for individuals whose activity gets reclassified as a business, and for anyone planning a sale that might close after the suspension lifts.
The Suspension Through 2026
Article 41 of Law 4172/2013 created the framework for taxing profits on individual property sales, but the Greek government has never collected the tax. A rolling series of legislative extensions has pushed enforcement back every year or two since 2014. Law 5162/2024 is the latest, keeping enforcement paused through the end of 2026.
The practical effect is straightforward. If you sell property in Greece as an individual and the transaction isn’t classified as business activity, you pay nothing on the gain. The government’s reasoning has been consistent: activating the tax would slow a real estate market that spent years recovering from the sovereign debt crisis, and policymakers have decided the revenue isn’t worth the drag. Whether the suspension gets extended again past 2026 or the tax finally takes effect is unknown, but the pattern of repeated extensions suggests another one is more likely than enforcement.
How the 15% Would Be Calculated
When the suspension eventually lifts, the calculation method determines your exposure. The taxable gain is the difference between your adjusted acquisition cost and the sale price, and the adjustment is where the mechanics matter.
The Ministry of Finance applies a deflation coefficient to the original purchase price based on your holding period. The coefficient scales upward with time held, inflating the original price to reflect the declining purchasing power of the euro. That prevents you from being taxed on gains that are really just inflation over 20 or 30 years of ownership.
The sale price used in the calculation isn’t necessarily what the buyer pays. Greek tax authorities compare two figures: the contractual sale price and the property’s Objective Value, a government-assigned figure for each zone and neighborhood, sometimes called the Zoni value. If the Objective Value exceeds the agreed price, the higher Objective Value is used. The same comparison applies on the acquisition side. Your taxable gain can therefore be larger than your actual economic profit if Objective Values in your area have climbed faster than market prices.
After applying the deflation coefficient to the acquisition cost and selecting the higher of the two sale-price figures, the resulting gain is taxed at a flat 15%.1Independent Authority for Public Revenue. Property Capital Gains Tax
When Property Sales Become Business Income
Both the 15% flat rate and the current suspension apply only to individuals selling personal property. If Greek tax authorities reclassify your activity as a business operation, the rules change substantially.
The threshold is lower than most sellers expect. Three or more property sale transactions within a two-year period can trigger business classification, even if you never registered as a professional property trader. The clock starts from the date of the first sale contract, and the count is based on contracts, not properties. Selling five apartments to the same buyer in a single contract counts as one transaction; selling two apartments to the same buyer on separate dates counts as two.
Once your gains are classified as business income, they lose the flat 15% rate and instead face progressive income tax brackets that reach 44% on income above €60,000.2Ministry of Economy and Finance. Income Taxation The full scale runs from 9% on the first €10,000 through six brackets. Fines and penalties can also apply if authorities determine you should have been reporting as a business from the start.
Two exemptions protect sellers from reclassification. Properties acquired through inheritance or donation from close relatives up to the second degree don’t count toward the transaction threshold. Properties you’ve owned for more than five years are also excluded from the count. Both carve-outs reward the passive, long-term ownership the tax code distinguishes from active trading.
Corporate Property Sales Are Not Suspended
Companies and other legal entities don’t benefit from the individual suspension or the 15% flat rate. When a Greek corporation, partnership, or other business entity sells real estate, the gain is folded into the entity’s total taxable income. The standard corporate income tax rate is 22%, with credit institutions under the deferred tax asset regime paying 29%.
That gap creates a real planning issue. Individuals holding property personally currently enjoy tax-free sales, while those who placed property into a corporate structure face 22% on the gain regardless. For property acquired before incorporation, the math on whether to transfer it out of the company before selling is complex, because the transfer itself can trigger tax consequences.
What Sellers Actually Pay Right Now
The capital gains suspension doesn’t make property transactions tax-free. The main fiscal obligation that applies today is the real estate transfer tax, set at 3% of the property’s taxable value. A municipal surcharge of 3% on top of the transfer tax amount brings the effective rate to roughly 3.09%. The buyer pays this tax, not the seller, which is the opposite of how many sellers expect it to work.
One important exception: new buildings sold before their first occupation are subject to 24% VAT instead of transfer tax. The government has repeatedly suspended VAT on new construction to support the building sector, and that suspension has been extended through 2026 as well. Where VAT applies, the 3% transfer tax drops away.
Sellers still lose meaningful ground to transaction costs. Notary fees typically run 0.8% to 1% of the property value, plus 24% VAT on the fee itself. Legal fees add roughly 1% to 2%. Real estate agents in Greece charge 2% to 4% of the sale price, usually paid by the seller. Between commissions, legal fees, and notary costs, budget for 4% to 7% of the sale price in transaction expenses even with no capital gains tax owed.
Even during the suspension, the notary handling the transaction still files a capital gains tax return through the myPROPERTY electronic platform operated by the Independent Authority for Public Revenue.3Gov.gr. Property Capital Gains Tax The calculated amount is zero, but the filing is required for the deed registration to proceed.
U.S. Tax Obligations for American Sellers
If you’re an American citizen or resident selling property in Greece, the Greek suspension doesn’t make the transaction invisible to the IRS. The United States taxes its citizens on worldwide income regardless of where the asset is located, so selling Greek real estate triggers a U.S. reporting obligation even when Greece charges nothing.
You report the sale on Form 8949, which reconciles proceeds and cost basis, and carry the result to Schedule D of your Form 1040.4Internal Revenue Service. About Form 8949, Sales and Other Dispositions of Capital Assets The gain is calculated in U.S. dollars, so currency fluctuations between the euro and the dollar over your holding period can either increase or decrease your reportable gain compared with the euro-denominated profit.
The 1950 U.S.-Greece tax treaty does not contain a specific article addressing capital gains from real estate sales. Instead, both countries retain the right to tax their own residents, and double taxation is managed through foreign tax credits rather than exclusive taxing rights.5Internal Revenue Service. Convention and Protocol Between the United States of America and Greece While the Greek suspension is active and you pay no Greek tax, there is nothing to credit against your U.S. liability. If the Greek tax activates and you pay the 15%, you can claim that amount as a foreign tax credit on Form 1116, provided the tax meets the IRS qualification tests: it must be an income tax, imposed on you personally, and represent your actual legal liability.6Internal Revenue Service. Foreign Taxes That Qualify for the Foreign Tax Credit The Greek transfer tax paid by the buyer would not qualify as your credit, since it is not your liability.
That timing creates an unusual planning dynamic. Selling during the Greek suspension means paying zero in Greece but the full U.S. rate on your gain. If the suspension lifts and you pay 15% to Greece, your U.S. bill drops by roughly that amount through the foreign tax credit. For properties with large gains, that calculus can shift whether it is better to sell now or wait for the tax to take effect.