Suspension of VAT on newly constructed properties extended to 2026 is oriented towards government and especially the economic team. The relevant announcements, however, are expected to be made at TIF by the Prime Minister in a few days, as they will be included in the housing announcements.
This decision makes things easier for both builders and buyers, since an extra charge of around 24% would put a damper on any thoughts of investing in real estate.
Essentially, the aim is, on the one hand, the continuation of the positive investment climate recorded in the sector, but at the same time increase in supply, in order to facilitate efforts to alleviate the acute housing problem.
What is being examined
Based on what is currently in effect until the end of 2025, the following is being considered for 2026:
Newly built properties should only be subject to transfer tax 3%. However, a possible extension of the measure to 2027 is also on the table.
It should be noted that capital gains tax on real estate — tax 15% imposed on profits from the sale of real estate, calculated as the difference between the sale price and the acquisition price— has been suspended with a relevant regulation until December 31, 2026, which is particularly important for the real estate market.
Example
It should be noted that VAT of 34% would result in a significant additional cost for the buyer.. So, for example, for an apartment worth €250,000, VAT would amount to €60,000. With the 3% provided for by the transfer tax, the additional tax burden amounts to just €7,500.
So, in the end, the total savings amount to €52,500, which is not an insignificant amount for someone who wants to buy a property to meet their housing needs.
The measure applies to properties delivered on or after December 12, 2019, with the provisions of Decision A.1156/2024 allowing even those who had opted for VAT status to change and be subject to transfer tax.
In these cases, it was even possible to refund buyers who had already paid for the 24%.
It should be noted that real estate transfer tax (FMA) 3% is the basic tax paid by the buyer on every home purchase when VAT does not apply – i.e. on all older homes and on new builds covered by the suspension.
It is calculated based on the objective value of the property (or the declared value, if higher) and is paid in a lump sum to the tax office before the contract is signed. For example, when purchasing an apartment with an objective value of €150,000, the transfer tax amounts to €4,500.
This amount is paid by the buyer and is a prerequisite for transferring the property to their name.
Hatzidakis: Measures targeted at the middle class
«At the TIF, we will announce reduction in direct taxes, which will be directly felt in the pockets of Greeks. And the measures will be targeted at the middle class.
This was emphasized by Deputy Prime Minister Kostis Hatzidakis in an interview on Monday with SKAI. He added: «The fact that we have the surpluses that we have—which are beyond our own expectations—allows us to take meaningful action. To the extent that the economy can withstand it and to the extent that European fiscal rules allow. Therefore, what we are saying is that you should not rely on our generosity. You should rely on the effective policy we have pursued in the economy. Basically, we have significantly higher growth than other European countries and we have also achieved significant results in combating tax evasion. This is how the surpluses have been generated, and it is these surpluses that we will distribute as a social dividend.».
When asked specifically about initiatives for large families, the Deputy Prime Minister pointed out: «For parents in general, measures have been taken at last year's TIF and earlier, starting in 2019 with the birth allowance. We owe it to these people to act as positively as possible. But we also owe it to ourselves, we owe it to our nation. Because demography is, in the medium to long term, the most important national problem facing the country.».
In addition, in relation to the progress of the implementation of reforms, the Deputy Prime Minister noted: «At the last Cabinet meeting, 25 different medium- and large-scale reforms were approved for the second half of 2025. That is four reforms per month or one reform per week. And among these is the National Water Plan. There is urban planning. It is the simplification of licensing procedures. It is the legalization of public universities. It is non-state universities. It is the 175 mobile health units to serve the Greek countryside, our villages.
The package
However, based on information provided by Kyriakos Mitsotakis, the government is expected to make announcements about the economy that will focus on four areas, income support and tax reductions with an emphasis on reforming the tax scales for employees, family support with an emphasis on incentives to halt demographic decline (tax exemptions, etc.), housing and development policy.
It should be noted that the finance ministry has given the green light for a package of benefits that will not exceed €1.5 billion, in order to maintain fiscal balance.
