The conveyance of properties through a
Parental Gift, are specifically regulated by Greek taxation law. The needs of
the Greek family as well as the special care that the Greek legislator provides
to family affairs, has resulted to a more favorable regulation of the Parental
Gifts through more lenient tax impositions than other conveyances.
Subject to Parental Gift taxation is the person who acquires the property
right, i.e. the child who accepts the Parental Gift. In case that the child
passes away, obliged to pay the tax imposition are his successors, i.e. his
legal heirs.
The tax obligation arises at the time of the execution of the Parental Gift
Deed in Greece. More specifically, for conveyances of real estate properties,
the parties have to file a Parental Gift tax statement before the competent tax
authority, prior to the execution of the Notarial Deed.
As indicated above, since the execution of a Parental Gift in Greece is only
effected through a Notarial document, the Parental Gift tax statement is
submitted prior to the execution of the Notarial Deed, regardless of any tax
imposition.
The law has ranked the relatives in categories, depending on their kinship with
the grantor. A different tax structure is provided for each category, providing
a tax free amount and a progressive tax scale, depending on the value of the
gifted property. Additionally, for the final tax imposition, any previous tax
paid for parental gifts and gift deeds are co-calculated and reduced from the
final tax imposition.
More specifically, the three categories are:
First category: parents, grandchildren, surviving spouse, etc…
Second category: grandparents, great grandchildren, brothers-in-law,
sisters-in-law, parents-in-law, children of the deceased from previous
marriages, etc.
Third category: any other relative who is not included in the above categories,
who do not have kinship with the grantor.
The procedure of a parental gift in Greece may be implemented through a Limited Power of Attorney to a specialized Greek Lawyer.
January 2020
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