The property market is once again at the centre of the government's tax planning, with the economic team presenting a measure that radically changes the landscape for a specific category of buyers: third-country nationals. At the same time, for the vast majority of transactions, the regime remains stable at least until the end of 2026 and probably through 2027 as well.
The current situation
Today, the Real Estate Transfer Tax stands at 3% of the taxable value of the property: that is, on the higher of the "objective value" and the price stated in the contract. If the 3% municipal surcharge on the base tax is added, the actual burden amounts to 3.09%. The tax is paid exclusively by the buyer, before signing the contract, by means of a declaration through the myPROPERTY system.
Within this framework there are also two further measures that remain "frozen": the 24% VAT on newly built properties has been suspended since 2015, with the most recent extension running until 31 December 2026, while a corresponding suspension also applies to the 15% capital gains tax on transfers of real estate by individuals.
The major change: a fivefold increase in the tax for buyers from third countries
The main new measure being promoted by the government concerns exclusively the purchase of homes by citizens of third countries, i.e. countries outside the European Union and the European Economic Area. According to the plan presented by the economic team, from 1 July 2027 the Real Estate Transfer Tax rate for this category of buyers will jump from 3% to 15%, that is, it will increase fivefold. With the municipal surcharge, the total burden will reach 15.45%, compared with 3.09% today.
Who is affected and who is not
The change is not across the board. The increased rate will apply exclusively to the purchase of homes and not to commercial premises, plots of land or other categories of property. In addition, the following are expressly exempt from the new regime:
- Greek citizens
- Persons of Greek ethnic origin living abroad
- Citizens of European Union and European Economic Area member states
- Third-country nationals holding long-term resident status in Greece
- Recognised refugees
- Third-country nationals holding a second-generation residence permit
The above categories will continue to be subject to the current regime, including, where applicable, the first-residence exemption.
How much the cost actually increases
The difference in the final cost of a purchase is significant. For a home with a taxable value of €200,000, today's tax amounts to €6,180 (including the municipal surcharge), while under the new rate it will rise to €30,900: an additional burden of €24,720. For a property worth €300,000, the tax will rise from €9,270 to €46,350, i.e. €37,080 more. In the case of a home worth €500,000, the burden will jump from €15,450 to €77,250, an increase of €61,800.
The rationale behind the measure
According to the leadership of the Ministry of Finance, the intervention is aimed at the increased demand for homes from buyers outside the European Union and the effects this has on prices, especially in areas where supply is limited. The scale of the relevant capital flows is not negligible: according to data from the Bank of Greece, in 2025 approximately €1.2 billion was invested in real estate purchases by third-country nationals, of which around €800 million concerned homes.
The rationale of the measure resembles practices already applied in other countries (it has been described as a "Canadian model") where increased taxes are imposed on foreign buyers of real estate with the aim of limiting investment pressure on the domestic housing market.
Expected effects on the market
The mere announcement of the measure, many months before it takes effect, is expected to cause short-term shifts in the market. Industry sources estimate that there will be an acceleration of purchases by third-country nationals in the coming period, as those already planning to invest in Greek real estate will have a strong incentive to complete the transaction before 1 July 2027, before the gap between 3% and 15% makes the purchase noticeably more expensive. This trend is expected to be more pronounced in areas already attracting strong investment interest from non-EU buyers.
Objective values remain "frozen"
Alongside the measure concerning buyers from third countries, the government appears to have chosen not to proceed with a revision of the "objective values" of properties at least until 2027, despite the fact that market prices have risen in many areas by as much as around 60%. This choice is aimed at avoiding an additional tax burden on property owners, given that the Real Estate Transfer Tax, inheritance/gift/parental-grant tax, and other charges are calculated on the higher of the objective value and the contract price.
At the same time, work continues on completing a new, automated system for determining property values, based on statistical models and data from public bodies, land registry services, the Bank of Greece and notaries, aimed at a more realistic and uniform recording of the value of real property across the country, which is a project that, however, is still in progress and is not expected to have an immediate effect on the taxation of transfers.
What those concerned should pay attention to
For the vast majority of buyers, Greek citizens, EU/EEA residents and the other exempt categories, the Real Estate Transfer Tax regime remains unchanged: a 3% rate (3.09% with the municipal surcharge), calculation on the higher of the objective and contractual value, and the possibility of a first-residence exemption where the requirements are met.
For third-country nationals planning to purchase a home in Greece, the new measure represents a substantial change to their financial planning. Those who fall under the new regime and are already in the process of searching for or negotiating a property have a window of around ten months, until 1 July 2027, to complete the transaction at today's lower rate.
This text is based on reports and announcements from September 2026. As the legislative process is ongoing, the details of the measure may be finalised or amended before it is passed. For specific guidance on a particular transaction, we recommend seeking the advice of a specialised lawyer. Our firm specialises in real estate transactions. Contact us or book an appointment to make the right decisions.