Greece introduces tax changes for businesses, construction and the property market

The proposed provisions include limiting surcharges on the minimum deemed taxable income, reducing the advance tax payment rate for sole proprietorships from 55% to 50% from the 2027 tax year, gradually abolishing the business levy for legal entities, and accelerating tax depreciation. At the same time, tax incentives relating to construction, renovations and property transfers are extended through the end of 2027.

Business Levy and Equipment Depreciation

The business levy will be abolished from the 2026 tax year for registered offices and branches located outside the Region of Attica, as well as in the Regional Unit of the Islands of Attica. Companies headquartered in Athens and the rest of Attica will benefit from a 50% reduction from the 2027 tax year.

Sole proprietorships and self-employed professionals are already exempt from the business levy, regardless of their registered location.

Regarding investments in machinery and equipment, Article 7 replaces the existing fixed annual depreciation rate of 10% with a tiered system: 10% for the first two years, 15% for the third and fourth years, and 25% for the fifth and sixth years.

The new depreciation framework will apply to fixed assets acquired from the 2027 tax year onwards.

Extension of Construction Tax Incentives

The suspension of VAT on the sale of newly built properties covered by the relevant tax regime is extended until 31 December 2027, with such transactions remaining subject to property transfer tax instead.

Similarly, the tax incentive for eligible expenditure on the energy, functional and aesthetic upgrading of buildings is extended until the end of 2027.

The suspension of capital gains tax on property transfers will also remain in place, as will the income tax exemption for residential properties made available for long-term rental, subject to the applicable conditions.

15% Property Transfer Tax for Buyers from Non-EU Countries

The draft legislation also introduces an increased property transfer tax rate of 15% for residential property purchases by individuals who are tax residents outside the European Union and the European Economic Area.

The provision will apply to definitive property transfer contracts concluded from 1 July 2027 and provides an exemption for buyers eligible for the relevant first-home tax relief.

The increased rate applies exclusively to individuals and does not extend to legal entities. Consequently, residential property purchases by Greek or foreign companies will not be subject to this specific additional tax, but will continue to be treated under the general tax framework governing such transactions.