Greece May Retain Capital Gains Tax Exemption: What It Means for Investors

Greece’s real estate market continues to receive positive signals from the government. One of the most important tax initiatives in recent years remains the suspension of the 15% capital gains tax on real estate sales by individuals.

Currently, this exemption is in effect until December 31, 2026, and the government is considering maintaining this favorable regime beyond that date. This decision could serve as an additional stimulus for the property market and foreign investors.

What Is Capital Gains Tax?

Under Greek law, there is a 15% tax on profits derived from the sale of real estate.

However, its application to private individuals was suspended back in 2015, and the exemption has been repeatedly extended ever since. Currently, the tax remains frozen until the end of 2026.

Why Is This Important?

Imagine an investor who purchased an apartment for €400,000 and sold it several years later for €550,000.

If the tax were active, the €150,000 profit could be taxed at a rate of 15%, which would amount to €22,500.

While the exemption remains active, no such tax is levied on standard transactions between private individuals. This enhances investment attractiveness and makes the market more liquid. However, in certain cases (for example, if the activity is classified as commercial enterprise), different tax rules may apply.

Why Is This Beneficial for the Market?

Extending the exemption brings several positive effects:

• stimulates property sales;
• increases interest from foreign buyers;
• boosts market liquidity;
• supports the development of the construction sector;
• encourages the inflow of international capital.

According to data from the Bank of Greece, foreign investment in real estate alone reached approximately €2.75 billion in 2024, confirming high international investor interest in the Greek market.

Expert Opinion

In my view, retaining this tax exemption is a logical step.

Greece is actively competing for international capital today. Buyers evaluate not only property prices, but also the tax environment, legal security of transactions, and asset appreciation prospects.

Preserving a favorable tax regime makes investing in Greek real estate more attractive for both private buyers and large-scale investors.

That is why, before buying or selling a property, it is important to evaluate the tax implications of a specific deal in advance and choose the most effective strategy.

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Useful Information

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Article reviewed by Alexey Fatuev — expert in real estate development and construction in Greece.