In an effort to ease the housing affordability crisis, the Greek government is reportedly preparing to extend the freeze on Value Added Tax (VAT) for newly built residential properties for another year—and to suspend the 15% capital gains tax on real estate transfers. The potential abolition of the capital gains tax is already visible on the horizon.
VAT Freeze Extended to 2027
The government plans to prolong the current suspension of the 24% VAT on sales of new residential properties through 2027. This measure is considered critical for sustaining construction activity and preserving investor interest in the real estate market, as it significantly lowers the final acquisition cost of housing.
Under the current regime, buyers of new properties pay only a 3% transfer tax based on the property’s objective value—instead of the full 24% VAT. For example, purchasing a new apartment priced at €200,000 would incur an additional €48,000 in VAT under standard rules, raising the total cost to €248,000. With the VAT freeze in place, the buyer pays just €6,000 in transfer tax—bringing the total cost to €206,000.
Capital Gains Tax Suspension Under Review
The government is also considering suspending the 15% capital gains tax applied to profits from real estate sales—the difference between purchase and sale price. For instance, if a property bought for €120,000 is later sold for €180,000, the €60,000 gain would normally be taxed at 15%, resulting in a €9,000 liability.
However, according to Greece’s public broadcaster ERT, this capital gains tax has never actually been implemented in practice.
Broad Economic Goal
The overarching aim of these measures is to maintain momentum in the real estate market and avoid further burdening transactions at a time when property prices continue to rise—making home ownership increasingly difficult for Greek households.
The proposals are expected to be formally announced at the upcoming Thessaloniki International Fair (TIF), where the government plans to present its strategy for unlocking real estate potential and supporting housing access.