Investment and market
Greece Plans to Extend VAT Exemption for New Buildings: What It Means for Buyers and Investors
The Greek government is preparing one of the most significant real estate decisions in recent years — extending the exemption that frees most new residential properties from 24% VAT. If the decision remains final, buyers of qualifying new developments will continue paying a property transfer tax of around 3% instead of 24% VAT, substantially lowering the purchase cost.
Why Is This Important?
As a general rule, sales of new residential properties in Greece are subject to 24% VAT. However, under the current regime for eligible properties, developers can apply a special exemption, allowing buyers to pay only the transfer tax — approximately 3–3.09%. The government intends to preserve this mechanism to support construction and demand for new housing.
How Much Can You Save?
Savings become particularly noticeable on high-value real estate.
| Property Value | 24% VAT | Transfer Tax (~3%) | Difference / Savings |
|---|---|---|---|
| €500,000 | €120,000 | approx. €15,000 | over €100,000 |
| €1,000,000 | — | — | over €200,000 |
For properties valued at €1 million, savings can exceed €200,000, making the extension of this exemption particularly important for foreign investors and buyers of premium real estate.
Why Is the Government Supporting This Measure?
The exemption was introduced to revive the construction sector following the crisis. In recent years, it has helped boost the number of new projects, support construction companies, and attract international capital.
According to Bank of Greece data, foreign direct investment in real estate reached €2.75 billion in 2024 alone, marking an increase of almost 29% compared to the previous year. Extending the tax exemption is intended to sustain this positive trend.
What Does This Mean for Buyers?
For those planning to purchase an apartment, villa, or investment property in Greece, maintaining the exemption means:
- Significantly lower purchase costs;
- More attractive conditions for investing in new developments;
- High potential for property value appreciation in developing areas such as Glyfada, Voula, Vouliagmeni, and Ellinikon.
It is important to note that application of this regime depends on the specific project and developer’s decision, so the tax status should be verified prior to purchase.
Useful Resources
Want to learn more about buying property, taxes, and construction in Greece? Visit the AILIT Group FAQ section.
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If you are considering purchasing real estate, building a villa, rental property, or investment project in Greece, contact AILIT Group. Our specialists will help evaluate tax benefits, select property, and fully accompany the transaction — from plot selection to commissioning.
Article reviewed by Alexey Fatuev — expert in construction and real estate development in Greece.