Real estate property implies the healthy
financial status of the tax payer and is subject to taxation in most countries.
Until recently, Greek real estate property taxation, was imposed mainly on the
conveyance of properties and not on the property itself. This was considered
unfair and a symptom of a less developed country. Upon these negative
critiques, therefore, an attempt to decrease the conveyance taxes and almost
abolish the inheritance tax and tax on Parental Gifts in Greece occurred. As an
offset to this abolishment of taxation, in the beginning of the year 2008, a
new Greek real estate taxation has been imposed that natural persons or legal
entities are in possession in Greece, i.e. the annual Greek real estate fee.
Such a fee is an annual real estate tax, which is imposed on real estate
property, that individuals or legal entities are in possession in Greece on
January 1, 2008 and for each year. For the implementation of this law, as real
estate property is considered every right of full ownership; of bare/“naked”
ownership (remainder); of life estate right on real estate property, even
rights of exclusive occupation on jointly owned parts of the basement, of the
“pilotis” or of the rooftop; or to the unbuilt section of the building, which
is used as parking space, auxiliary space or as a swimming pool.
Subject to taxation is every individual or legal entity regardless of its
citizenship, residence or seat, that is in possession of real estate property
rights within Greece on January 1 of each year, regardless of the changes on
the property status, which will occur within the same year.
The annual real estate fee is estimated on the value that the properties or the
real estate property rights have on January 1 of the year of taxation. In areas
where the “objective” tax estimation system is in effect, the fee is imposed on
the objective tax value in Greece the properties have according to this tax
system. The value is estimated according to the values that the Greek Ministry
provides, and according to the specific documents for estimating the objective
tax value. In case that the objective tax system is not in effect for the
specific area, the value is estimated on the market value of the property.
The Greek real estate taxation of each person is taxed separately. Competent
Tax authority for the submission of the statements and the tax imposition, is
the Tax authority where the tax payer files his income tax statements. For
natural persons, information for real estate properties that each person has, is
provided by the E-9 tax statements, which are filed jointly with the annual
Income tax statements, declaring the annual changes on the property status.
The prior payment of annual Greek real estate fee is necessary prior to any
conveyance deed. According to the provisions of the law, the execution of a
Notary Deed is prohibited, without attaching to the Deed, the relevant
certificate that the fee, which correspond to the specific property has been
paid in full.
January 2020
“The content of this website do not constitute legal advice and under no circumstances should they be considered as such, until our office is retained and has reviewed the complete file of the client’s case”