Greece: Double Growth in Real Estate Transfers

The Greek tax authorities registered twice as many property transfers in October compared to the previous two months.

The data shows that there are currently over 1,000 online transactions performed daily, while in August and September they barely exceeded 500 per day. Thousands of people rush to buy or sell real estate before the end of the year, while many others seek to hand over real estate to their children or grandchildren.

The new property tax rates, known as “objective value”, will be raised in most parts of the country (exactly in 7634 zones) from January 1. This prompts many owners who have decided to sell their assets to do so now and save themselves from expenses that will skyrocket next year. Those who wish to buy real estate in areas where this tax will rise more significantly are interested in making a transfer of real estate before the end of the year in order to reduce the property transfer tax, which they will pay at higher rates.

In addition to adjusting the objective values, the wave of transfers is also growing, thanks to the abolition of the tax on parental benefits of up to 800,000 euros each and the postponement of the mandatory use of electronic ID for each building until January 1. Major notaries say that as the end of the year approaches, the number of daily transfers of property will increase.

The adjustment of the objective values ​​will lead to an increase in zonal rates up to 55% for the country, with an average increase of 19.5%. It is important to note that adjusting the property value also includes placing all of the country’s real estate in the fair value system. This means that 13,808 districts now have zonal rates on which almost all taxes and fees associated with real estate are based.

One of the largest hikes recorded in three zones on the island of Mykonos is 229%: at a rate of 1200 euros per square meter, their objective cost has grown to 3800-3950 euros per square meter. Other regions with a large increase from January 1 will be Ithaki (250%), Rhodes (200%) and Kos (108%).

Real estate will also grow in various areas of Attica, such as Lagonisi (93%), Marousi (54%) and Khalandri (52%).

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