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Restoration of tax justice, tackling tax evasion and other provisions 1st house purchase

1.   The real property transfer tax rate is readjusted as follows: 8% for real property valued up to 20.000 Euros and 10% for any excess thereof. The existence of a fire brigade service in the area where the real property is located shall not be considered in the computation of this tax rate.

2.   The automatic surtax and real property transaction cost are being abolished.

3.   The granting of tax exemption due to purchase of a first principal residence is associated with the homeowner’s marital status and the type of real property purchased. Tax exemption is granted as follows: For a single person, up to 200.000 Euros. For a married person up to 250.000 Euros, incremented by 25.000 Euros for each of the first two children and by 30.000 Euros for each child in excess of the above. In the case of a married person with a degree of disability of 67% the tax exempt amount totals 275.000 Euros. In the case of purchase of a residence, the aforementioned tax exempt amounts include the value of a 20m²-area parking space and a 20m²-area storage space provided that they are part of the same real property and acquired under the same real estate contract.

In the case of purchase of a land plot, the tax exempt amounts are determined as follows: For a single person, up to 50.000 Euros. For a married person, up to 100.000 Euros, incremented by 10.000 for each of the first two children, and by 15.000 Euros for a third child and for each of those to follow.

The above prerequisites apply equally in the case of acquisition of a first principal residence due to parental grant or inheritance. 

4.   Third-country nationals residing outside the EU also qualify for tax exemption due to purchase of a first principal residence provided that they meet the criteria set forth in Presidential Decree No. 150/2006 (Gov. Gazette 160A) On Long Term Residents.  

5.   Tax exemption due to purchase of a first principal residence is not granted to ethnic Greeks not residing in Greece at the time of purchase of the real property.

6.   In the case of conveyance (either in exchange for a consideration or as a gift) of a satisfactory share in a real property or land plot the area whereof covers the housing needs of the beneficiary, no tax exemption shall be granted to such beneficiary, his spouse or minor children, unless 5 years elapse from the time such conveyance was effected. The same applies in the case of transfer of usufruct or right of inhabitancy in a real property.

7.   With regard to cases which by December 12, 1994 were subject to inheritance, gift and parental grant taxation, the Greek State’s right to impose and collect taxes comes under statute of limitations.

8.   With regard to inheritance, gift and parental grant taxation applicable to city-planned real properties, or real properties under eminent domain, tax deferral is being abolished. Where taxation has already been deferred, a 12-month time-period shall be allowed to enable owners to submit a pertinent tax statement for the imposition of a direct tax on such real properties.

9.   Agricultural tax exemptions are being abolished.

10. Henceforth only the Greek State, and any transactions realized in its favor, shall be entitled to a full exemption from gift/inheritance tax.

Public law legal entities, local self-governments, churches and monasteries, the Brotherhood of the Holy Sepulcher, the Holy Monastery of the God-Trodden Mount Sinai, the Ecumenical Patriarchate of Constantinople, the Ecumenical Patriarchate of Jerusalem and Antioch, the Church of Cyprus, the Orthodox Church of Albania, and non-profit legal entities pursuing causes of a religious nature or of a beneficial character to the public and the nation, are subject to a 0,5% tax.

11. The inheritance tax is calculated for all assets (real properties, stocks, cash, other movable assets) in accordance with the applicable tax brackets. The gift/parental grant tax is calculated in accordance with tax brackets, with the exception of  pecuniary gifts  which are separately taxed  at a 10%, 20% and 40% rate  (categories A, B and c respectively), without any amount being considered tax-free.