Property transactions in Greece for locals and foreigners will continue under the current objective values, without VAT or capital gains tax, until the end of 2025. Although real estate prices continue to rise, especially in high-demand areas, the government has decided to maintain the current objective property values and keep VAT on newly constructed properties and the capital gains tax on hold. This decision is driven by the ongoing housing shortage, with 200,000 homes missing from the market, and the need to sustain growth in real estate investments.

The freeze on objective values, the 24% VAT, and the capital gains tax will keep property transactions affordable through the end of the next year. If objective values were to increase to align with market prices, particularly in areas with significant gaps, the costs for taxpayers would rise sharply, even for those within the tax exemption limit, due to the increase in associated expenses such as notary fees, land registry fees, and realtor commissions for property buyers or those transferring properties to their children or grandchildren.

With property prices reaching new highs, having increased by over 66% since the lows of 2017, the upcoming measures, expected to be announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair, include:

• A freeze on property objective values at current levels until the end of 2025. Even if price adjustments are decided upon next year, the new objective values for property transfers will only take effect in 2026.
• An extension of the VAT suspension on property transfers. The government has extended the suspension of the 24% VAT on new building transfers until the end of 2025. This freeze applies to all unsold properties, whether owned or built by developers under the exchange system, until the suspension application. The measure aims to bolster the construction sector against rising raw material prices and construction costs while supporting its growth, as construction is a key economic driver. Experts in the real estate market also note that suspending the 24% VAT on new buildings is a crucial incentive for developers and investors in the Greek real estate market. With VAT deactivated, the cost of acquiring housing decreases significantly due to the reduced financial burden on buyers. For instance, a property worth €200,000, would cost €248,000 with the 24% VAT and transfer tax. With the VAT suspension, the price drops to €206,000, saving the buyer €42,000 or 17%.
• The capital gains tax will remain postponed. The Ministry of Finance is likely to delay the 15% capital gains tax on property transaction profits until the end of 2025. The postponement of this measure, set to expire on December 31, 2024, is seen as almost certain, as it would help curb rising property prices and support market transactions, providing relief to the real estate sector.