Capital Gains Tax on Property Sales in Greece: Current Rates and Exemptions for 2025

Reading time: 12 minutes

Ever wondered why some property investors in Greece walk away with substantial profits while others face unexpected tax bills? The secret lies in understanding Greece’s capital gains tax landscape—a complex but navigable system that can make or break your investment returns.

Here’s the straight talk: Smart property investment isn’t just about buying low and selling high—it’s about strategic tax planning that maximizes your net returns.

Table of Contents

• Understanding Greek Capital Gains Tax Framework
• Current Tax Rates and Calculation Methods for 2025
• Key Exemptions and Deductions Available
• Real-World Scenarios: When Tax Planning Makes a Difference
• Strategic Compliance and Documentation
• Your Tax Optimization Roadmap

Understanding Greek Capital Gains Tax Framework

Greece’s capital gains tax system operates on a principle that might surprise you: not all property sales are created equal. The tax treatment depends heavily on your residency status, the property’s acquisition date, and how long you’ve held the asset.

The Two-Tier System Explained

Greek tax law distinguishes between two primary categories of property sellers:

• Individual taxpayers: Private property owners selling personal real estate
• Business entities: Companies or professionals dealing in real estate as part of their business activities

This distinction isn’t merely administrative—it fundamentally changes your tax obligations and available strategies.

Residency Impact on Tax Obligations

Your tax residency status in Greece significantly influences your capital gains exposure. Greek tax residents face comprehensive taxation on worldwide property gains, while non-residents typically pay tax only on Greek-sourced property income.

Quick Scenario: Imagine you’re a German investor who purchased a vacation home in Santorini in 2020 for €300,000 and sold it in 2024 for €420,000. Your tax treatment will differ dramatically based on whether you’re considered a Greek tax resident.

Current Tax Rates and Calculation Methods for 2025

The 2025 tax rates reflect Greece’s ongoing efforts to balance revenue generation with investment attraction. Here’s what property sellers need to know:

Standard Capital Gains Tax Rates

For individual taxpayers, Greece applies a 15% capital gains tax rate on property disposals. This rate applies to the net gain—the difference between your sale price and the property’s acquisition cost, adjusted for allowable deductions.

Calculation Methodology: The Details Matter

Calculating your capital gains tax isn’t as straightforward as applying 15% to your profit. The Greek tax system allows several adjustments that can significantly impact your final tax bill:

Allowable Deductions Include:

• Original purchase price (inflation-adjusted for properties held over 5 years)
• Notary fees and transfer taxes paid during acquisition
• Major renovation and improvement costs
• Legal and professional fees related to the sale

The inflation adjustment mechanism deserves special attention. For properties held longer than five years, Greece allows you to increase the original purchase price by official inflation indices, effectively reducing your taxable gain.

Key Exemptions and Deductions Available

Greece’s capital gains tax system includes several exemptions that can dramatically reduce or eliminate your tax liability. Understanding these exemptions is crucial for effective tax planning.

Primary Residence Exemption: Your Most Valuable Shield

The primary residence exemption represents the most significant tax-saving opportunity for individual property owners. If you sell your main residence, you may qualify for complete capital gains tax exemption, provided you meet specific conditions:

• Ownership period: You must have owned the property for at least 5 years
• Residence requirement: The property must have served as your main residence for at least 2 of the 5 years preceding the sale
• Frequency limitation: You can use this exemption only once every 4 years

Investment in New Property: The Rollover Strategy

Greece offers a valuable rollover provision that allows you to defer capital gains tax if you reinvest the proceeds in another Greek property within specific timeframes:

Rollover Requirements:

• Purchase replacement property within 3 years of the sale
• Invest at least 70% of the sale proceeds in the new property
• Use the replacement property for the same purpose (personal use or investment)

Small Gains Exemption

For capital gains below €20,000 annually, Greece provides a de minimis exemption. This threshold applies per taxpayer, making it particularly valuable for couples who can structure their property ownership to maximize this benefit.

Real-World Scenarios: When Tax Planning Makes a Difference

Let’s examine how these rules play out in practice through real-world examples that illustrate the importance of strategic planning.

Case Study 1: The Athenian Family Home

Maria and Dimitri purchased their Athens apartment in 2018 for €180,000. In 2025, they’re selling it for €240,000 to relocate for work. Here’s how their tax situation breaks down:

Without Strategic Planning:

• Gross gain: €60,000
• Allowable costs (legal fees, agent commission): €8,000
• Net taxable gain: €52,000
• Capital gains tax (15%): €7,800

With Primary Residence Exemption:

• Same financial facts, but the property qualifies as their primary residence
• Capital gains tax: €0 (complete exemption)
• Tax savings: €7,800

Case Study 2: The International Investor’s Dilemma

James, a UK resident, bought a Mykonos vacation rental in 2019 for €350,000. He’s now selling it for €480,000 in 2025. His situation illustrates the complexity facing non-resident investors:

James faces a €16,500 tax bill in Greece. However, as a UK resident, he may also owe UK tax on the same gain, though double taxation treaties typically provide relief mechanisms.

The Corporate Strategy Alternative

Some investors choose to buy property in greece through corporate structures, which can offer both advantages and complications:

Advantages:

• Potential for more favorable financing terms
• Easier transfer of ownership interests
• Business expense deductions

Disadvantages:

• Higher corporate tax rates (24% vs. 15%)
• Additional compliance requirements
• No access to individual exemptions

Strategic Compliance and Documentation

Successful capital gains tax management in Greece requires meticulous documentation and proactive compliance strategies. Many taxpayers stumble not because they lack understanding, but because they fail to maintain proper records.

Essential Documentation Framework

Your documentation strategy should begin the moment you acquire property. Essential records include:

• Purchase documentation: Notarial deed, transfer tax receipts, legal fees
• Improvement records: Receipts for renovations, upgrades, and major repairs
• Expense tracking: Property management fees, insurance, and maintenance costs
• Sale documentation: Agent agreements, marketing costs, legal fees

Common Compliance Pitfalls to Avoid

Based on discussions with Greek tax advisors, these are the most frequent mistakes property sellers make:

1. Undervaluing properties: Greek tax authorities use sophisticated valuation models. Significant undervaluation can trigger audits and penalties
2. Missing deadlines: Capital gains tax must be declared by March 31st of the year following the sale
3. Inadequate record keeping: Without proper documentation, you cannot claim legitimate deductions

Professional Support: When to Engage Experts

While basic capital gains calculations might seem straightforward, certain situations warrant professional guidance:

• Cross-border transactions involving tax treaties
• Corporate property holdings
• Complex family ownership structures
• Properties inherited or received as gifts

Your Tax Optimization Roadmap

Rather than viewing capital gains tax as an inevitable cost, successful property investors treat it as a manageable component of their investment strategy. Here’s your practical roadmap for optimizing your tax position:

Phase 1: Pre-Purchase Planning (Months Before Buying)

• Structure Analysis: Determine whether individual or corporate ownership serves your long-term goals
• Residency Planning: Understand how your tax residency affects your obligations
• Documentation Setup: Establish systems for tracking all property-related expenses from day one

Phase 2: Ownership Period Management (During Property Holding)

• Improvement Documentation: Maintain detailed records of all property enhancements
• Exemption Qualification: Monitor your eligibility for primary residence or other exemptions
• Market Timing: Consider how holding periods affect your tax position

Phase 3: Pre-Sale Strategy (6-12 Months Before Selling)

• Tax Calculation: Project your likely tax liability under different scenarios
• Timing Optimization: Consider whether delaying the sale might improve your tax position
• Rollover Planning: If purchasing replacement property, ensure you meet rollover requirements

Phase 4: Post-Sale Compliance (After the Transaction)

• Declaration Filing: Submit your capital gains tax return by the March 31st deadline
• Payment Management: Pay any tax due promptly to avoid penalties
• Record Retention: Maintain all documentation for at least 5 years after filing

The Greek property market continues evolving, with government policies increasingly focused on attracting foreign investment while ensuring fair tax collection. Understanding these dynamics positions you not just to comply with current requirements, but to anticipate and prepare for future changes.

Your next move: How will you structure your Greek property investments to maximize after-tax returns while remaining fully compliant with evolving tax requirements?

Frequently Asked Questions

Do I need to pay capital gains tax if I’m selling at a loss?

No, capital gains tax only applies when you realize a gain from the property sale. However, you cannot offset property losses against other types of income in Greece. Capital losses from property can only be offset against future capital gains from property sales within the same tax year or carried forward for up to 5 years.

How does the inheritance of property affect capital gains tax obligations?

When you inherit property in Greece, your cost basis for capital gains purposes is typically the property’s market value at the time of inheritance, not the original purchase price paid by the deceased. This “stepped-up basis” can significantly reduce capital gains tax when you eventually sell the inherited property. However, you’ll need proper valuation documentation to support this basis.

Can non-EU citizens benefit from the same capital gains tax exemptions as EU residents?

Yes, most capital gains tax exemptions in Greece apply based on tax residency status rather than nationality or EU citizenship. Non-EU citizens who qualify as Greek tax residents can access the same exemptions, including the primary residence exemption, provided they meet all the necessary criteria. However, non-residents face more limited options regardless of their nationality.

Article reviewed by Henry Caldwell, Distressed Assets Specialist | Turning Risks into Opportunities, on June 4, 2025