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Exiting a Greek real estate investment: asset sale versus share sale
Quick answer
An individual selling Greek real estate currently pays no capital gains tax: the 15% tax exists in law but its application has been suspended, at present until 31 December 2026, with an announced extension to 2030 not yet enacted. A company selling real estate pays 22% corporate income tax on the gain over the tax written-down value, and the buyer pays 3.09% transfer tax. Where the property is held in a company, the alternative is to sell the company’s shares. A foreign corporate seller without a Greek permanent establishment is generally not taxed in Greece on that gain, subject to the applicable treaty, and the buyer avoids transfer tax, notarial fees and registration costs.
Two exit routes
From an exit planning perspective there are two fundamentally different transactions:
- Asset sale. The owner of the property, whether an individual or a company, transfers the real estate itself by notarial deed.
- Share sale. The shareholder of a property-owning company transfers the shares in that company. The property stays where it is; only its owner’s owner changes.
The tax results differ at the level of the seller, the buyer and the asset, so each route is analysed separately.
Asset sale by an individual
Capital gains from the transfer of real estate by individuals are in principle subject to a 15% capital gains tax. The provision has never been applied because its entry into force has been suspended repeatedly. The current suspension runs to 31 December 2026, and the Greek government announced at the Thessaloniki International Fair that it will be extended to 31 December 2030, though this has not yet become law.
Under the framework in force today, an individual who buys and later sells Greek property directly pays no capital gains tax. Investors planning a sale several years ahead should nevertheless treat the suspension as a political variable rather than a permanent feature.
Asset sale by a company
A company’s gain on the sale of real estate is business income taxed at the corporate rate of 22%. The gain is the sale price less the tax written-down value, broadly acquisition cost plus capitalised improvements less accumulated depreciation. Because buildings are depreciated at 4% a year, the written-down value falls over time and the taxable gain on exit rises correspondingly.
On the buyer’s side, the transfer attracts Real Estate Transfer Tax at 3.09% on the higher of the price and the objective value, plus notarial, legal and registration costs. These are not the seller’s liability, but they affect pricing and marketability.
Share sale by a foreign holding company
Capital gains realised by a foreign company on the sale of shares in a Greek company are treated as business profits for Greek purposes. Where the foreign seller has no permanent establishment in Greece to which the gain is attributable, the gain is generally not subject to Greek corporate income tax, subject to the terms of the applicable double tax treaty and the facts at the time of sale. The tax position of the gain in the seller’s home jurisdiction must be assessed separately.
For the buyer, a share purchase involves no transfer tax, no notarial deed on the property and no Land Registry re-registration. The buyer acquires the company with its history, so legal and tax due diligence on the company replaces part of the title due diligence on the property.
Comparison
| Asset sale by individual | Asset sale by company | Share sale by foreign HoldCo | |
| Seller’s Greek tax | 15% suspended; nil under current law | 22% on gain over written-down value | Generally nil without Greek PE, subject to treaty |
| Buyer’s transfer tax | 3.09% RETT | 3.09% RETT | None |
| Notarial deed and registration | Required | Required | Not required for the property |
| Transaction costs | Notary, lawyer, registry | Notary, lawyer, registry | Share transfer formalities, due diligence |
| Marketability | Standard | Standard | Attractive to buyers avoiding RETT; narrower buyer pool for some assets |
Structuring for exit flexibility
Holding each property in a separate company preserves the option of selling one asset by share sale without disturbing the others, and allows the seller to offer the buyer a choice between an asset deal and a share deal. The share route is particularly attractive to buyers of high-value property, where 3.09% transfer tax and associated costs represent a material sum, and can translate into a better price for the seller.
Frequently asked questions
Is there capital gains tax on selling property in Greece? For individuals, the 15% tax is suspended until at least 31 December 2026. Companies pay 22% on the gain.
Who pays transfer tax on a property sale in Greece? The buyer, at 3.09% on the higher of the price and the objective value.
Is a sale of shares in a Greek property company taxed in Greece? A foreign corporate seller without a Greek permanent establishment is generally not taxed in Greece, subject to the relevant double tax treaty.
Why would a buyer prefer to acquire shares rather than the property? To avoid 3.09% transfer tax, notarial fees and registration costs, and to complete faster.
* 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.