KEY CHANGES TO PROPERTY TAXATION
Following Parliament’s approval of a bill, changes to property taxation are due to take effect on 1 January 2027. They cover ENFIA property tax, tax monitoring of rentals, incentives for building restoration, and taxation of income from property. The main changes are outlined below.
– Full ENFIA exemption from 1 January 2027 for main residences in communities with up to 2,000 inhabitants
All communities in the Municipal Unit of Kolymbari, including Kolymbari village, should qualify for the ENFIA exemption in 2027.
Communities in Attica are excluded, except those in the Islands Regional Unit. The population threshold is 2,200 in Western Macedonia, the Regional Unit of Evros, and municipalities in Eastern Macedonia, Thrace and Epirus that border neighbouring countries.
As announced at the Thessaloniki International Fair, the exemption is expected to cover 12,860 communities and around 650,000 owners of main residences. Beneficiaries must be individuals who are tax residents of Greece and have declared the property as their main residence on their tax return. Main residences with a taxable value above €400,000 are excluded.
– The Property Ownership and Management Register (MIDA) is scheduled to launch in 2027
Once the register launches, new rental agreements must be recorded within three months of their start date. Property gifts to children, relatives and friends must also be registered within three months. Inaccurate or late declarations attract fines for both owners and tenants, ranging from €500 to €1,000.
Once operational, the register will allow incorrectly declared property floor areas to be corrected without fees or fines arising from past declarations.
– Rent must be paid into the owner’s bank account
Originally planned for 2025, this requirement has been postponed to the beginning of 2027. It applies to both individuals and legal entities. Owners must submit the required notification through AADE’s MIDA platform. If rent is not paid by the prescribed method, the landlord loses the 5% deduction for expenses, repairs and renovations, as well as any social allowances linked to the rental.
– Property transfer tax for buyers from third countries is expected to rise from 3% to 15%
An amendment expected to be approved by Parliament in 2027 would raise property transfer tax from 3% to 15% for buyers who are neither Greek nationals, expatriate Greeks nor EU citizens.
– VAT exemption on sales of newly built properties to be extended
The existing exemption expires on 31 December 2026. Newly built properties with building permits dated after 1 January 2026 that remain with the construction company are exempt from 24% VAT. Their first transfer instead attracts a 3% transfer tax on their objective value. A bill recently submitted by the Ministry of National Economy and Finance would extend the VAT exemption to 31 December 2027.
– Lower income tax on rental income
The current tax rate on rental income between €12,000 and €24,000 is 35%. For the 2026 tax year, with income declared in 2027, this falls to 25%. More than 150,000 taxpayers are expected to benefit.
– Suspension of the 15% capital gains tax on property sales to continue
The current suspension, which runs until 31 December 2026, is expected to be extended by one or two years.
– Tax relief for home renovation and modernisation to be extended
Income tax relief on renovation and modernisation expenses of up to €16,000 is expected to be extended to 31 December 2030. The expenses are spread over five years, with €3,200 deductible each year.
– Tax exemption for rental income to be extended
To ease the shortage of long-term rental homes in Chania and elsewhere in Greece, rental income from homes previously declared vacant or used for short-term rentals is exempt from income tax for three years. Leases must last at least three years. Properties must not exceed 120 m², with an additional 20 m² allowed for each dependent child beyond the second. Contracts must currently be signed and declared by 31 December 2026. Proposed legislation would extend the scheme to 2027.
Sources:photo credit: ellasestate
Haniotika Nea
kolymbaricourier.com
Ellasestate
