New tax reshapes the foreign buyer landscape

The transfer tax will increase to 15%, from the current 3%, for individuals who are citizens of countries outside the European Union and the European Economic Area. According to the government’s clarifications to date, the measure will exempt people of Greek origin and long-term residents, while the increase will not apply to legal entities.

The government has set 1 July 2027 as the implementation date, giving the market almost ten months to adjust following the announcement of the measure at the Thessaloniki International Fair. The intervention forms part of the government’s housing policy and, according to the economic policy team, aims to ease the pressure that external investment demand is placing on the residential property market.

The property transfer tax currently stands at 3% of the property’s taxable value. An additional levy of 3% of the principal tax is imposed in favour of municipalities and communities, bringing the effective total charge to 3.09%.

Under the new rate, assuming the same municipal levy remains in place, the total effective rate will rise to 15.45%.

For the purchase of a residential property with a taxable value of €800,000, the principal tax will increase from €24,000 to €120,000. Including the municipal levy, the total charge will rise from €24,720 to €123,600.

The €98,880 difference materially changes the overall acquisition cost and, for buyers making purchases on investment grounds, correspondingly affects the return on invested capital.

“This is a change that the luxury residential property market in Attica will be monitoring closely in the coming months, as it directly affects a significant segment of the international client base,” comments Korina Saia, CEO of Premier Realty.

€2 Billion in Foreign Purchases

The measure comes at a time when Greece continues to attract significant foreign investment in the real estate market, despite the decline recorded in 2025. Foreign capital inflows for real estate purchases amounted to approximately €2.05 billion in 2025, down from the record high of €2.75 billion in 2024, representing a decline of approximately 25%.

The decline was more pronounced in capital originating from countries outside the European Union, following the tightening of the terms of the Golden Visa programme. Approximately €1.2 billion of total investment in 2025 is attributed to buyers from third countries, according to market data presented on the basis of Bank of Greece figures.

This represents the segment of international demand that is closest to the scope of the new measure, although it does not fully overlap with it, as the new tax specifically applies to individuals purchasing residential property and provides for certain exemptions.

Pressure on the €250,000–€800,000 Segment

The impact is not expected to be uniform across all market segments. According to Premier Realty, greater sensitivity may emerge in residential properties valued between €250,000 and €800,000, where the additional tax burden could materially alter an investor’s calculations.

At €400,000, for example, the principal tax will increase from €12,000 to €60,000. At €500,000, it will rise from €15,000 to €75,000, while at €800,000 the difference will reach €96,000 before the municipal levy.

“The increase in the tax raises the entry cost for a specific category of buyers, but it does not negate Athens’ structural advantages: its relative affordability, geographical location and level of safety, which continue to attract international capital,” Ms Saia points out.

The Attica residential property market has recorded a significant increase in prices in recent years, already reducing part of the cost advantage it previously held over other European destinations. The additional taxation further increases costs for a specific group of international buyers.

The Corporate Route

One of the most significant features of the government’s announcement is that the increased rate applies to individuals rather than legal entities.

This raises questions as to whether part of international demand will shift towards corporate structures for the acquisition of residential properties. Purchasing through a company entails a different tax, accounting and legal framework, while the final legislation will determine whether provisions will be introduced to prevent structures established solely to avoid the higher tax.

International experience indicates that such measures can trigger rapid changes in the composition of demand.

In 2016, British Columbia imposed an additional 15% tax on residential property purchases by foreign buyers in the Greater Vancouver area. Official data showed a sharp decline in the share of foreign buyers in transactions immediately following the measure’s implementation.

The comparison, however, has limitations, as the Canadian measure had a different geographical scope and also covered companies under foreign control.

In Spain, meanwhile, the government had proposed a tax burden of up to 100% on residential property purchases by non-EU non-residents. However, the proposal has not, to date, secured the parliamentary support required for its adoption.