VAT on the purchase of real estate in Greece: what to expect in 2024?

Greece, with its beautiful beaches and rich history, attracts many foreign investors looking to purchase property in this amazing country. In 2020, the Greek authorities took steps to ease the process of purchasing new buildings by exempting them from VAT until the end of 2023. But what will happen to VAT on property purchases in Greece in 2024? Let's look at possible scenarios.

According to experts, there is a possibility that the moratorium on paying VAT on real estate will be extended for another year. This means that purchases of new buildings in Greece will continue to be exempt from VAT until the near future. However, the Greek authorities have not yet confirmed the official extension of this moratorium, and therefore it is worth being prepared for the possibility that from 2024 the VAT rate on real estate purchases may return to 24%.

Purchasing real estate in Greece includes not only paying VAT, but also a number of other expenses. During the moratorium period on VAT, the buyer is required to pay only 3.09% of the value of the property specified in the notarial agreement. This amount includes 3% transfer tax and 0.09% council tax. However, in addition to these taxes, the buyer will also have to cover additional costs such as registration fees, lawyer, notary and Greek realtor fees.

If you are planning to purchase property in Greece, it is important to keep up to date with changes in legislation, especially regarding taxes. At the moment, thanks to the moratorium on paying VAT on new buildings, buying real estate in Greece has become more affordable.

However, despite the likelihood of an extension of this moratorium, it is necessary to be prepared for the possible return of the VAT rate to 24% from the beginning of 2024. Contact Mercury Group experts for up-to-date information and advice on purchasing property in Greece and minimizing your tax liability.