Buying property in Greece through a company or as an individual: steps, costs and taxes on acquisition

Buying property in Greece through a company or as an individual: steps, costs and taxes on acquisition

Quick answer

The legal steps, transaction costs and acquisition taxes for buying property in Greece are the same whether the buyer is an individual or a company. A purchase is completed by notarial deed and registered at the Land Registry or Cadastre. Resale property attracts Real Estate Transfer Tax at an effective 3.09%; a new build sold by a VAT-registered developer attracts 24% VAT unless the developer has opted into the VAT suspension regime, in which case 3.09% transfer tax applies instead. The choice between personal and corporate ownership is therefore driven by what happens during the holding, rental and exit phases, not by the acquisition itself.

The five legal steps of a Greek property purchase

Greek law requires the same formalities for every purchaser, whether a private individual or a Greek or foreign legal entity.

1. Title search at the Land Registry or Cadastre. A lawyer verifies the uninterrupted chain of ownership and checks for mortgages, liens, foreclosures and other encumbrances.
2. Verification of building legality. A qualified engineer reviews building permits and compliance with planning and zoning rules. Where irregularities exist, additional procedures before the Urban Planning Authority may be required.
3. Issuance of a Greek tax number (AFM). Every purchaser must hold a Greek AFM before the deed can be signed. A foreign company acquiring property needs its own AFM.
4. Execution of the notarial deed. Any transfer of in rem rights over Greek real estate for consideration must be executed before a Greek notary. All tax declarations are filed and taxes paid before signing.
5. Registration of the deed. The transfer becomes effective against third parties only once registered at the competent Land Registry or Cadastre.

For off-plan purchases, buyers typically sign a reservation agreement and pay advances, with the final deed executed once the developer obtains the construction permit.

Transaction costs

Cost item	Typical level	Borne by
Notary fee	Up to approx. 1% of contractual value	Purchaser
Estate agent fee (if any)	Freely negotiated, commonly 2% plus VAT	Each party
Lawyer’s fee	Not mandatory by law but standard practice	Purchaser
Land Registry / Cadastre fees	Fixed fees varying by location and value	Purchaser

Real Estate Transfer Tax (RETT) at 3.09%

The purchase of existing real estate is subject to Real Estate Transfer Tax at 3% plus a municipal surcharge of 0.9%, giving an effective rate of 3.09%. The tax is payable by the buyer on the higher of the sale price and the property’s objective value.

Objective values are set under Greece’s Objective Real Estate Valuation System by zone and property type, then adjusted for factors such as construction quality, age, floor level, facade and, for rural land, touristic significance. Most residential and resort areas in Greece are now covered by the system, so the objective value will usually be relevant to the tax base.

VAT at 24% on new buildings and the suspension regime

Transfers of newly constructed buildings by VAT-registered developers are, in principle, subject to VAT at 24% instead of transfer tax. Greece currently offers developers an optional suspension of VAT on qualifying unsold new properties. Where the developer opts in, VAT is suspended until 31 December 2026 and the buyer pays 3.09% transfer tax instead. The suspension covers all unsold qualifying properties of that developer, who must file a list of them with the attributable input VAT.

The Greek government announced at the Thessaloniki International Fair that the suspension will be extended to 31 December 2030. As at the date of this article, the extension has not yet been enacted, so buyers of new builds should confirm the position at the time of signing.

For a buyer of a new villa or apartment, four conditions must therefore be met for the 3.09% rate to apply: the suspension regime is in force on the date of the final deed; the developer has opted in; the specific property falls within the scope of the suspension; and all other statutory requirements are satisfied.

Individual or company: what changes at acquisition

Nothing material. An individual buyer becomes the direct legal and beneficial owner and personally bears the taxes and costs above. A company buyer pays the same taxes and follows the same formalities but adds a layer of incorporation, registered office, accounting, beneficial-ownership reporting and corporate maintenance costs.

The decision between personal and corporate ownership is therefore made on the basis of the holding-period taxes, the treatment of rental income, VAT recovery, financing and the exit route — each covered in the related articles in this series.

Frequently asked questions

Do I pay transfer tax or VAT when buying a new villa in Greece? If the developer has opted into the VAT suspension regime and the regime is in force when the deed is signed, you pay 3.09% transfer tax. Otherwise, VAT at 24% applies.

Can a foreign company buy property in Greece? Yes. The company needs a Greek AFM and completes the same notarial and registration steps as an individual.

Is a lawyer required for a property purchase in Greece? Not by law, but a lawyer conducts the title search and is engaged in practice to ensure the property is lawfully transferable.

What is the objective value of a property? The administrative value set by the Greek tax authority by zone and property type. Transfer tax is calculated on the higher of the price and the objective value.

 

* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.