The Greek Ministry of Finance is set to extend the tax deduction scheme for home renovation and repair costs, with the aim of boosting local construction and encouraging energy-efficient improvements to the country’s housing stock. This extension applies to the 2025 tax year and is expected to be legislated soon.

Under this scheme, taxpayers undertaking eligible renovation or repair work in 2025 can claim up to €3,200 off their income tax annually, over five years, amounting to a total benefit of €16,000. These deductions will appear in tax assessments from 2026 to 2030.

Deduction framework and limits

The deduction is tied to the total amount spent, distributed equally across five years. For instance, a €10,000 expenditure results in a €2,000 tax credit per year. If a taxpayer owes less than the eligible yearly amount, the benefit is reduced to match their actual tax liability.

For total expenses over €16,000, the tax benefit remains capped at €16,000, regardless of how much more is spent.

The deduction cannot be refunded, rolled over to future years, or used to offset other taxes. It also can’t be transferred to another person or to a spouse. In cases of joint ownership, the benefit is split according to each party’s share, and for usufruct or bare ownership, it is calculated based on the value of the respective right.

To qualify, expenses must:

• Be paid solely through electronic transactions.

• Include proper and legal receipts or invoices with full details: issuer’s info, taxpayer’s VAT number, and property registration number (ATAK).

• Concern properties in Greece and service providers registered in Greece.

• Not be part of any subsidy programs (like “Renovate” or “Save Energy“).

• Not already be deducted from business revenue.

Additionally, only one-third of material costs count toward the deduction, while the rest must be attributed to services.

What expenses qualify

Eligible costs fall under two key categories:

A. Services:

• Energy-saving upgrades, such as insulation, new windows and glass panels, installation or upgrading of heating/cooling units, solar panels with energy storage, solar hot water systems, mechanical ventilation with heat recovery, and LED lighting for shared areas.

• Functional or aesthetic renovations, like plumbing/electrical updates, roof and wall repairs, painting, elevator upgrades or installations, EV charging points, and floor replacements.

B. Goods:

• Insulation products, window frames, photovoltaic equipment and batteries, materials for electrical and plumbing work, as well as supplies for repairs and painting.

Widely welcomed by property and construction professionals, this policy is expected to drive activity in trades linked to building and energy retrofitting. At the same time, it promotes transparency and reduces tax evasion by requiring electronic payments and official documentation.

The measure also aligns with broader efforts to improve energy efficiency in housing and modernize Greece’s aging building stock, which forms the majority of existing residences.