In his pendant real estate capital gains tax orients financial staff government, wishing, on the one hand, to support the construction industry, and on the other hand, not to provoke an increase in real estate prices, which are at a high level.

Thus, after “freezing” for another two years the 24 percent VAT on newly built properties (until the end of 2024), it is planned to suspend the introduction of a 15 percent capital gains tax on property transfers, a tax that was introduced in 2013, but not implemented.

In accordance with the legislation (law 4172/2013), a tax of 15% is levied on the positive difference (capital gain) arising from the sale of property at a price higher than the price at which it was acquired. The law has been suspended until December 31, 2022, and it looks like it will be “frozen” again.

This means that those who plan to sell property from the new year will not pay 15% tax on the difference between the prices at which they purchased the property and the prices at which they will sell it.

The “frozen” provision provides that:

VAT on new buildings remains “frozen” until the end of 2024.

– Capital gains tax is levied at a rate of 15% on the profits made between the purchase price and the sale price of each property. The tax is paid by the seller of the property, and the buyer must pay a transfer tax of 3% of the value of the property.

– As long as the taxpayer owns the property being sold for at least five years from the date of purchase, capital gains are tax-free up to EUR 25,000.

– Those who transfer property owned before 1995 are exempt from capital gains tax.

Meanwhile, on Monday Minister of Finance H. Staikouras, speaking at the Prodexpo conference, said that the sector had suffered significantly during the financial crisis of the previous decade, including due to the overstatement of taxes of previous years. Which, he said, was reflected in a sharp drop in construction activity over the period, with new property development hitting consecutive negative records.

However, as the minister pointed out, “the implementation of our policy (including the reduction of VAT, the suspension of VAT, etc.) led to a warming of the real estate market, which was reflected in the growth of construction activity, which in 2021 is a record for a decade, as well as an improvement in the position of Greece as a destination for investment, with foreign direct investment in real estate gradually returning to pre-pandemic levels, which were also record levels.”

But Mr. Staikouras also announced new tax incentives. In particular, he stressed that the government, despite the obstacles, will continue to support the sector through continuous tax cuts, significant reforms and targeted interventions, using significant resources from the Recovery Fund and the new NSFR.