In Greece, Value Added Tax (VAT) applies to the sale of newly constructed properties—that is, properties that have never been used by a buyer and are sold within five years of the completion of construction. However, under the current suspension, such transactions remain exempt from VAT and are subject only to a reduced property transfer tax of 3%.
The VAT regime on newly built real estate has long been a critical issue in the Greek property market. Introduced on January 1, 2006, the VAT aimed to increase transparency and combat tax evasion in the construction sector.
To boost the market during a period of stagnation, the government implemented a three-year suspension of VAT on new property sales from January 1, 2020, to December 31, 2022. Since then, the measure has been extended multiple times, with the most recent extension now pushing the suspension through to the end of 2026.
The issue remains central to the real estate sector, as the reintroduction of VAT would significantly impact both property prices and buyer demand—especially in the current environment of rising prices driven by supply constraints.
In addition, the government plans to maintain the current freeze on objective property values—the tax-assessed values used for calculating various property-related taxes—through next year. The only changes expected are the inclusion of additional areas within the objective valuation system, without adjusting existing rates.
These ongoing policy measures aim to support market activity and affordability during a period of high demand and limited housing stock, particularly in urban and high-investment zones.
