By Samuel Warren 
Non-Resident Property Owners: Greek Taxes if You Own but Don’t Live in Greece
Reading time: 15 minutes
Table of Contents
- Introduction
- Understanding Non-Resident Property Ownership in Greece
- Greek Tax System Overview
- Property Taxes for Non-Residents
- Income Tax Considerations
- Capital Gains Tax
- Value Added Tax (VAT)
- Double Taxation Agreements
- Reporting Requirements
- Tax Planning Strategies
- Recent Changes and Future Outlook
- Conclusion
- FAQs
1. Introduction
Greece, with its stunning landscapes, rich history, and vibrant culture, has long been an attractive destination for international property investors. The allure of owning a piece of paradise in the Mediterranean, whether for personal use or as an investment, has drawn many non-residents to purchase property in this beautiful country. However, navigating the complexities of Greek taxation for non-resident property owners can be challenging. This comprehensive guide aims to demystify the Greek tax system for those who own property in Greece but don’t reside there permanently.
As we delve into the intricacies of Greek taxation for non-resident property owners, it’s crucial to approach this topic with the same analytical rigor we apply to broader economic trends. Just as we examine housing market dynamics and labor indicators to gauge economic health, understanding the tax implications of owning property abroad is essential for making informed investment decisions.
2. Understanding Non-Resident Property Ownership in Greece
Before we dive into the specifics of taxation, it’s important to clarify what constitutes a non-resident property owner in Greece. Generally, you’re considered a non-resident if you spend less than 183 days per year in Greece. This status has significant implications for your tax obligations and the way the Greek government views your property ownership.
Non-resident property owners in Greece typically fall into several categories:
- Holiday home owners who use their property for personal vacations
- Investors who purchase property to generate rental income
- Individuals planning for future retirement in Greece
- Those who have inherited property in Greece but live elsewhere
Each of these scenarios can have different tax implications, which we’ll explore in detail throughout this article.
3. Greek Tax System Overview
The Greek tax system, like many others, is complex and subject to frequent changes. For non-resident property owners, it’s crucial to stay informed about these changes to ensure compliance and optimize tax efficiency. The main types of taxes that non-resident property owners need to be aware of include:
- Property Tax (ENFIA)
- Income Tax on Rental Income
- Capital Gains Tax
- Value Added Tax (VAT) on certain property transactions
- Inheritance and Gift Tax
Each of these taxes has its own rules, rates, and exemptions that apply specifically to non-residents. Let’s examine them in more detail.
4. Property Taxes for Non-Residents
4.1 ENFIA (Unified Property Tax)
The Unified Property Tax, known as ENFIA, is the primary property tax in Greece. It applies to all property owners, regardless of residency status. ENFIA consists of two components:
- Main tax: Based on the property’s location, size, age, and other characteristics
- Supplementary tax: Applied to properties with a total value exceeding €300,000
For non-resident property owners, it’s important to note that ENFIA is calculated based on the property’s “objective value,” which is determined by the Greek tax authorities and may differ from the market value. The tax is typically paid in five monthly installments, starting from September each year.
4.2 Special Property Tax
In addition to ENFIA, some non-resident property owners may be subject to a Special Property Tax of 15% on the property’s objective value. However, this tax primarily targets offshore companies owning property in Greece and has several exemptions. Most individual non-resident property owners are exempt from this tax, provided they can prove their identity and tax residency in another country.
5. Income Tax Considerations
If you generate rental income from your Greek property, you’ll need to pay income tax on these earnings. The tax rates for rental income are progressive and apply as follows:
- Up to €12,000: 15%
- €12,001 – €35,000: 35%
- €35,001 and above: 45%
Non-resident property owners should be aware that these rates apply to the gross rental income, with limited deductions allowed. It’s crucial to maintain accurate records of all rental income and expenses related to the property.
6. Capital Gains Tax
Capital Gains Tax (CGT) in Greece applies to the profit made from selling a property. As of 2023, the CGT rate is 15% of the capital gain. However, there are several factors to consider:
- The tax only applies to properties acquired after January 1, 2006
- There are exemptions for primary residences, but these typically don’t apply to non-residents
- The calculation of the capital gain takes into account factors such as inflation and the duration of ownership
It’s worth noting that CGT rules in Greece have been subject to frequent changes and suspensions in recent years. Always consult with a tax professional for the most up-to-date information before selling your property.
7. Value Added Tax (VAT)
VAT can apply to property transactions in Greece, but its application is limited and often doesn’t affect non-resident property owners. VAT at 24% is generally only charged on the first sale of new buildings by construction companies. Most resale transactions between individuals are exempt from VAT.
However, if you’re considering purchasing a newly constructed property or engaging in property development activities, it’s essential to understand the VAT implications thoroughly.
8. Double Taxation Agreements
Greece has signed double taxation agreements (DTAs) with numerous countries to prevent income from being taxed twice. If you’re a non-resident property owner, the DTA between Greece and your country of residence may affect how your Greek-sourced income is taxed.
These agreements can impact various aspects of taxation, including:
- How rental income is taxed
- The treatment of capital gains from property sales
- Inheritance tax considerations
It’s crucial to review the specific DTA applicable to your situation and seek professional advice to ensure you’re taking full advantage of any tax relief available.
9. Reporting Requirements
Non-resident property owners in Greece have several reporting obligations to the Greek tax authorities. These include:
- Annual income tax returns for any Greek-sourced income
- Declaration of property ownership for ENFIA purposes
- Reporting of any changes in property ownership or usage
Failure to comply with these reporting requirements can result in penalties and complications with Greek tax authorities. It’s advisable to work with a local tax professional to ensure all necessary declarations are filed accurately and on time.
10. Tax Planning Strategies
Effective tax planning can help non-resident property owners optimize their tax position in Greece. Some strategies to consider include:
- Structuring property ownership to maximize available tax benefits
- Timing property sales to take advantage of any available CGT exemptions
- Carefully managing rental income to ensure compliance while minimizing tax liability
- Exploring opportunities for mortgage interest deductions, where applicable
Remember, the Greek property market, much like the broader economic landscape, is a dynamic ecosystem. Just as we analyze labor market stability and housing inventory trends for economic insights, a nuanced approach to tax planning can yield significant benefits for non-resident property owners.
11. Recent Changes and Future Outlook
The Greek tax system has undergone several changes in recent years, often in response to broader economic conditions and policy objectives. Some recent developments and potential future changes to watch include:
- Ongoing efforts to digitize tax administration and improve compliance
- Potential adjustments to property valuation methods for tax purposes
- Possible changes to incentives for foreign investors in Greek real estate
As we’ve seen in our economic analyses, policy shifts can have significant impacts on market dynamics. Non-resident property owners should stay informed about these changes and be prepared to adapt their strategies accordingly.
12. Conclusion
Navigating the Greek tax system as a non-resident property owner requires diligence, careful planning, and often professional assistance. While the complexities can seem daunting, understanding your obligations and opportunities is crucial for making the most of your Greek property investment.
Just as we emphasize the interconnected nature of economic indicators in our market analyses, it’s important to view Greek property taxation as part of a larger financial ecosystem. Your tax strategy should align with your overall investment goals, whether you’re seeking rental income, planning for retirement, or simply enjoying a holiday home in this beautiful Mediterranean country.
Remember, while this guide provides a comprehensive overview, tax laws can change, and individual circumstances vary. Always consult with qualified tax professionals familiar with both Greek tax law and international taxation to ensure you’re making informed decisions about your real estate athens and other Greek property investments.
FAQs
1. Do I need to pay taxes in Greece if I own property but don’t live there?
Yes, non-resident property owners are subject to various taxes in Greece, including property tax (ENFIA) and potentially income tax on rental income. The specific taxes you’ll need to pay depend on your individual circumstances and how you use the property.
2. How is rental income from Greek property taxed for non-residents?
Rental income is taxed at progressive rates ranging from 15% to 45%. Non-residents are taxed on their gross rental income, with limited deductions allowed. It’s important to declare all rental income and keep accurate records.
3. Can I benefit from double taxation agreements if I pay tax on my Greek property in my home country?
Potentially, yes. If there’s a double taxation agreement between Greece and your country of residence, you may be able to avoid paying tax twice on the same income. However, the specifics depend on the agreement and your individual situation.
4. Are there any tax advantages to owning property in Greece as a non-resident?
While there aren’t specific tax advantages for non-residents, Greece has introduced some incentives for foreign investors in recent years. These include “golden visa” programs and potential tax breaks for pensioners who become tax residents. However, these require careful consideration and often a change in residency status.
5. How often do I need to file tax returns for my Greek property?
Non-resident property owners typically need to file annual tax returns in Greece if they have any Greek-sourced income, including rental income. Additionally, you’ll need to make declarations related to property ownership for ENFIA purposes. The specific filing requirements can vary based on your individual circumstances, so it’s advisable to consult with a Greek tax professional.
Article reviewed by Marco Rossi, Private Equity Portfolio Director | Transforming Distressed Assets into High-Performance Investments, on March 14, 2025