Two interventions considered pivotal both for containing prices in the real estate market and for supporting construction activity are at the center of the economic team’s planning for 2027, with strong indications that both measures will be extended. These are the suspension of the 24% VAT on new property sales and the 15% capital gains tax on property transfers — with sources suggesting that the outright abolition of the latter measure is also being considered.
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The decisions are expected to be finalized in the coming weeks, as part of the tax relief package to be announced by the Prime Minister at the Thessaloniki International Fair (TIF). The goal is to sustain the momentum of the property market and prevent additional transaction costs at a time when real estate prices continue to rise, making homeownership increasingly difficult for households.
Here’s a closer look at both measures:
*Suspension of the 24% VAT on newly built properties: Maintaining this measure through 2027 is considered especially important for supporting construction activity and preserving investor interest in the real estate market, as it significantly reduces the final cost of purchasing a home. Thanks to the VAT suspension, buyers of newly built properties are only subject to a 3% transfer tax on the property’s objective value. As an example, purchasing a newly built apartment worth €200,000 with a 24% VAT applied would increase the cost by €48,000, bringing the final price to €248,000. Under the current regime, the tax burden is limited to €6,000 in transfer tax, keeping the total cost at €206,000. It is worth noting that VAT on newly built properties was first introduced in 2006 at a rate of 19%, with primary residences initially exempt. During the years of the memoranda, the rate was raised to 24%, remaining in force for 13 years and causing, according to officials, significant distortions in the property market. In 2019, a three-year suspension of the VAT was decided, which came into effect from January 1, 2020 to December 31, 2022, with successive extensions granted since then — the most recent of which is set to expire at the end of 2026. The suspension applies to building permits issued from 2006 onwards, covering both projects built directly by construction companies and properties developed through the Greek antiparochi system (in-kind land-for-apartment exchange). A prerequisite for the VAT exemption is that the developer must have submitted, or must submit, a relevant suspension request to the AADE (Independent Authority for Public Revenue). The suspension applies mandatorily to all unsold properties associated with the relevant building permits.
*Exemption from the 15% capital gains tax on property transfers: Maintaining the suspension of the capital gains tax is also a key element of the 2027 planning framework. Sources indicate that the possibility of permanently abolishing it is on the table, given that this is a tax that, although legislated, was never actually implemented in practice. The capital gains tax is levied on the difference between the purchase price and the sale price of a property — in other words, on the profit generated from the transfer. For example, if a property is acquired for €120,000 and subsequently sold for €180,000, the €60,000 capital gain would be taxed at a rate of 15%, resulting in a tax liability of €9,000.
