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.

Law 3634/2008 provided the reduction of taxes not only for inheritances but for conveyances of properties through parental Gifts, as well. However, the new Government has fulfilled its proclamations and issued law No. 3815/2010, pursuant to which many changes have been effected to taxation of parental gifts. The provisions of this law concern parental gifts that occurred after January 8, 2010.

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.

The competent tax authority for filing the Parental Gift tax statements is the tax authority of the parent's residence. However, in cases that the filing of the Parental Gift tax statement to the competent tax authority is difficult, since the competent tax authority is located far away from the place where the Parental Gift Deed will be executed, it is permitted to file the Parental Gift tax statement in the Tax authority of the place of the deed's execution. In case that the parent- grantor is a foreign resident, the competent tax authority is the Greek Tax authority for foreign residents or any other Tax authority appointed by the relevant ruling of the Minister of Economics. For Greeks residing abroad, the parental gift deed may be executed before the Greek Consulate, and the Parental Gift tax statement is filed before the Greek Consul and the tax is paid in full to it.

According to taxation Law 3634/2008, the Parental Gift tax in Greece is progressively reduced. More specifically, Parental Gifts in Greece which take place after December 13, 2007 are regulated by this law. This law provided a tax free amount of €95,000 on the value of the gifted property , while the remainder of the property's value is taxed with a fixed percentage of 1%, if the gift concerns real estate property rights. The above fixed percentage of taxation rises to 0,6% and 1,2 % for parental gifts of stocks and bonds, and 10% for other assets.

The new taxation law 3815/2010, has increased the tax free amount to €150, 000. When the parental gift concerns real estate properties, the remaining of the properties’ value over the tax free amount is taxed under a progressive tax percentage of 1% to 10%. 

In case of parental gift of funds, the tax is estimated on a fixed percentage of 10%.

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.

Payment of the tax imposition on Parental Gifts of real estate properties after December 13, 2007 (date that the new law has been enacted), is effected in three equal bimonthly installments of no less than €500 for each one respectively, except for the last one. When Parental Gifts in Greece include other property, payment of the imposed tax is effected in 6 equal bimonthly installments. Same applies, according to the provisions of the new law.

Taxation of gifts is basically, the same as for the Parental Gifts and inheritances in Greece. 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: grand parents, 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 or heirs, who do not have kinship with the grantor.

The tax imposition is validated and paid in up to 24 bimonthly installments. Each of such installments can not be less than €500, except for the last installment. If the amount is paid in full within the deadline for the payment of the first installment, then a 5% discount on the total amount is provided.

The procedure of a parental gift in Greece may be implemented through a Special Power of Attorney to a specialized Greek Lawyer.

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