Capital gains tax in Greece may be the most famous tax in the country that nobody has ever paid. It was legislated in 2013, suspended from 2015 and has been renewed ever since with the reliability of a TV series that always gets another season. The current season ends on 31 December 2026 and, by all indications, the show has been renewed again: the new tax bill now in public consultation extends the suspension for one more year. For anyone flipping property in Attica, and especially for owners living abroad who sell in order to buy something else, the more interesting plot is playing out on other channels.
A message warning everyone who “bought from 2020 onwards” has been doing the rounds among property owners lately. Quite a few of its claims need correcting. We went to the sources, the Greek Income Tax Code, the Government Gazette and the new bill, and we explain it all without the jargon that usually calls for a painkiller.
Capital gains tax in Greece today: what the law says
The tax is set out in article 41 of the Greek Income Tax Code (Law 4172/2013). It applies a 15% rate to the profit an individual makes from selling property, provided the seller is not carrying on a business activity. Its application is suspended up to and including 31 December 2026, under paragraph 33 of article 72 of the Code, as amended by article 90 of Law 5162/2024 (Government Gazette A 198/5.12.2024).
In practice, what counts is the date of the final transfer deed, not the preliminary agreement. Under the law currently in force, anyone signing by 31/12/2026 is covered. Under the new provision, once it is passed, the cover extends to the whole of 2027.
Three misconceptions doing the rounds
“It only applies if you bought from 2020 onwards”
Not true. The law makes no reference to 2020. Capital gains tax in Greece covers property acquired from 1 January 1995 onwards. Only for property acquired up to 31/12/1994 is the gain deemed to be zero (article 72 of the Code). In other words, the flat you bought in Glyfada in 2008 is not off the hook just because it is an “old purchase”.
“Inherited and gifted property is exempt”
Not under article 41. The tax looks at how you sell, not how you acquired the property. If you sell an inherited property or a parental gift, the acquisition price is the value on which inheritance or gift tax was calculated. Since that is usually the official “objective” value, which in Attica is often far below market value, the taxable gain can turn out impressively large. Inherited property is exempt from something else: the presumption of business activity, which we cover below.
“I pay 15% on the difference and that is it”
Almost. The law provides two reliefs that few people remember. First, reduction coefficients based on how many years you held the property, from 100% in the first year down to 60% after 26 years or more. Second, if you held it for at least five years, up to €25,000 is deducted from the gain before it is taxed. On the other hand, costs directly linked to the purchase or the sale are not added to the acquisition price or deducted from the sale price.
What capital gains tax in Greece would cost in practice
An example from Athens
Say you bought a flat in Pangrati in 2023 for €180,000 and sell it in 2027 for €240,000. The difference is €60,000. With four years of ownership the reduction coefficient is 94.7%, so the taxable gain comes to €56,820 and the tax to €8,523. With the suspension in force, the tax is zero. That is exactly the amount every new extension “gifts” to sellers.
Now the same scenario with a purchase in 2021. Six years of ownership, a coefficient of 91.2%, a gain of €54,720, minus €25,000 for the five year rule. The remaining €29,720 is taxed and the tax drops to €4,458. As you can see, the five year mark matters almost as much as the date on the calendar.
These examples are indicative. The exact calculation for your property is a job for your accountant or tax adviser.
Flipping: the trap that was never suspended
This is the point that really matters for anyone flipping property. The suspension covers only article 41, meaning the private individual selling their own assets. It does not cover article 21 of the Code, which defines when a sale counts as a business transaction.
Under paragraph 3 of article 21, even a single transaction carried out for profit can be a business transaction. For real estate in particular, every three similar transactions within two years are treated as a systematic activity. In that case the profit is neither taxed at 15% nor covered by the suspension. It is taxed as business income, on the business income scale, whose upper brackets go well beyond 15%.
The law leaves three cases out of this count: inherited property, property received as a gift from relatives up to the second degree and property held for more than five years. The classic flip, buy, renovate and sell within 12 to 18 months, fits none of them.
One more thing for the day the suspension stops being renewed. Under article 41 the gain is calculated on the prices stated in the deeds. The law does not explicitly allow renovation costs to be deducted. For a flip, that means you could be taxed on a profit that in reality went on tiles, window frames and the electrician.
A new extension for 2027: what the bill provides
The Ministry of National Economy and Finance has put the bill “Strengthening disposable income, savings and investment” out for public consultation until 1 November 2026. It contains the measures announced at this year’s Thessaloniki International Fair. Article 13 amends paragraph 33 of article 72 of the Code so that the suspension also covers 2027. The same bill extends the suspension of VAT on new builds for 2027.
The provision takes effect on publication of the law, so what remains is the vote in Parliament, expected before the end of the year. In practical terms, sellers no longer need to race against December. For flippers, however, the extension changes nothing about article 21, and that is where the real bill lies.
Foreign owners: capital gains tax in Greece does not check passports
Many of our clients live in the United States, Australia, the United Kingdom or the Gulf and own property in Attica. The first question is always the same: “Does the suspension apply to me?” The answer is yes. Profit from property located in Greece is Greek source income wherever the seller lives, and the article 41 suspension covers Greeks and foreigners alike. Beyond that, the two types of foreign seller we see in our office have very different concerns.
If you flip from abroad
Article 21 makes no exception based on residence. An American investor who buys, renovates and sells three flats in Koukaki within two years may be considered by the Greek tax authority to be carrying on a business. The profit is then taxed in Greece on the business income scale, and the suspension does not help.
There is a second front that most people discover too late. The Greek suspension does not bind the country where you live. The United States taxes its citizens on gains worldwide, and Australia and the United Kingdom do the same for their tax residents. A gain taxed at zero in Greece may be taxed in full at home, and with no Greek tax paid there is nothing to credit against it. Before your next flip, a conversation with a tax adviser in your home country is worth as much as a good deal.
If you sell in order to buy something else
The second group is quieter but just as common. The investment flat in Marousi needs to become a house in Varkiza, or the holiday home in Porto Rafti a flat near the metro. For these sellers the news is good. A single sale to change home is not a systematic activity, and if you held the property for more than five years the law explicitly leaves it out of the count. With the suspension extended, the full gain stays available for your next purchase.
Greece has no rollover relief that defers tax when the gain is reinvested in another property, as some countries do. While the suspension lasts this does not affect you, but on the day the tax returns it will be payable on a change of home too.
Watch the purchase, not the sale
Here is the news few people have noticed. The same bill that extends the suspension also provides, in article 16, for a 15% transfer tax instead of 3% when a home is bought by an individual who is tax resident in a country outside the EU and the EEA. The provision applies to final deeds from 1 July 2027 and is still in consultation, so the details and any exemptions may change.
For a property with a taxable value of €400,000, that is roughly €12,000 versus €60,000 in tax. For anyone living outside Europe who is planning to sell and buy again, the clock that matters is no longer December 2026 but June 2027, and it applies to the purchase deed.
Golden Visa: ask about your permit before you sell
If the property is the one that gave you an investor residence permit, selling it is not only a tax matter. Under article 100 of the Migration Code (Law 5038/2023), renewing the permit requires the property to remain in your ownership. If you sell it to another non-EU national, the buyer may become entitled to a permit and yours is revoked. A non-EU seller also needs a certificate from the Aliens and Migration Service stating whether the property was used for a residence permit. A new permit with a new property is subject to today’s thresholds, €800,000 in Attica. We always plan this part together with your lawyer, before the property goes on the market.
What to do if you are thinking of selling
- Get your paperwork ready early. The energy performance certificate, the engineer’s certificate, land registry details and the property tax (ENFIA) certificate all take time. A clean file sells faster and for more.
- Do not build your plan on extensions alone. The suspension is renewed one year at a time. If you plan to sell in 2028, factor in the scenario that the tax comes back.
- Work out the net benefit. The tax falls on the profit, not the price. The right asking price makes a bigger difference than any tax deadline.
- If you live abroad, you do not need to fly in. The sale can be completed through a power of attorney. You will need a Greek tax number (AFM), and it is wise to brief your tax adviser at home in advance.
- Check your profile as a seller. If you have made other sales in the last two years, talk to your accountant before signing anything.
- Keep your acquisition file. If the tax returns, your purchase deed will be the most valuable document in the drawer.
Capital gains tax in Greece and the next episode
So the series has been renewed for one more season, and sellers can breathe a little easier. Capital gains tax in Greece still sits on the statute shelf, ready to return in the year no extension comes, and for flippers article 21 never takes a break. If you are thinking of selling property in Attica, or would like a well documented valuation before you decide, the Epsilon Team is here to look at it with you.
Frequently asked questions
When does the suspension of capital gains tax in Greece end?
Under the law in force, on 31 December 2026 (article 90 of Law 5162/2024). The new tax bill, now in consultation, extends it to cover 2027 as well.
Does it only apply to purchases after 2020?
No. It applies to property acquired from 1/1/1995 onwards. For earlier acquisitions the gain is deemed to be zero.
If I sell an inherited property, do I pay capital gains tax?
If the tax returns, yes. The acquisition price is the value on which inheritance tax was calculated.
I am a foreigner living abroad. Does the suspension cover me?
Yes, for Greek tax. Your country of residence may still tax the gain independently, as the United States, Australia and the United Kingdom do.
If I sell and buy again in 2027, what changes?
If you are tax resident outside the EU and the EEA, the bill provides for a 15% transfer tax on the purchase of a home with a deed signed from 1/7/2027. The provision is still in consultation.
If I flip property, does the suspension cover me?
Only if the sale is not considered a business activity. Three similar sales within two years establish a systematic activity, and the profit is taxed on the business income scale regardless of the suspension.
Do I need to rush to sell in 2026?
With the new extension, once passed, no. In any case what counts is the date of the final deed, not the preliminary agreement.
Sources
- Law 5162/2024, Government Gazette A 198/5.12.2024, article 90 (AADE)
- AADE, circular O.3064/17.12.2024 on the provisions of Law 5162/2024
- Ministry of National Economy and Finance, Draft State Budget 2027
Reviewed by Paraskevas Liartis, Legal Counsel
EPSILON TEAM, real estate agents / appraisers
TEL: +30 210 721 2284
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