Greece may extend the abolition of VAT on new buildings and remove capital gains tax

The Greek government is considering extension of suspension of VAT 24% on new buildings and the possible permanent abolition of capital gains tax on the sale of real estate.

The Greek real estate market is awaiting new tax decisions: the government is considering extending the suspension of the 24% VAT on new buildings and the possible permanent abolition of capital gains tax on the sale of real estate.

Final decisions are expected to be announced at ΔΕΘ. Currently, the suspension of VAT on new buildings is valid until December 31, 2026, which is also indicated on the official housing policy portal stegasi.gov.gr.

If the relief is not extended, buyers of new properties will once again face 24% VAT instead of the current 3% property transfer tax. In a market where prices are already an exercise in financial endurance, this would not just be a “correction” but a blow to trades.

What does the suspension of VAT give?

The main purpose of the measure is to prevent a sharp rise in the price of new apartments. For example, when the price of an object €200,000 VAT 24% would be added €48,000bringing the final cost to €248,000. Now, with a real estate transfer tax of about 3%, the amount is approximately €206,000.

That is why extending the suspension is seen as a way to support construction activity and not impose an additional tax burden on buyers of new buildings. It is a rare case when the state discusses not a new way to take money, but the possibility of not taking even more for now. Almost humanism, only with a calculator.

Athens News previously wrote that housing in Greece has already risen sharply in price in recent years, and the market is becoming less accessible to local buyers. IMF: housing prices in Greece have risen by 85% since 2016.

Capital gains tax may be removed permanently

The second issue is the capital gains tax of 15% when selling real estate. It was supposed to apply to the difference between the purchase price and the sale price, but it was suspended many times and in fact the tax never became a full-fledged element of the market.

Now the option of not another postponement, but a final cancellation is being considered. Such a measure can simplify transactions and remove another factor of uncertainty for owners, investors and buyers.

For the state, this is a matter of balance: the budget loses a potential source of income, but the market receives fewer tax obstacles. In an environment of expensive construction, high materials prices and weak housing affordability, authorities seem reluctant to add another brake.

Why is this important for the market?

A 24% VAT refund on new builds could dramatically increase the final purchase price, especially in large cities and areas with high demand. This would hit buyers, but also developers, who would either have to cut margins or face falling demand.

Given that the majority of transactions in Greece are still for old housing, new apartments remain an expensive segment of the market. “Athens News” was sorted outthat buyers more often choose old apartments, since new buildings are becoming almost unattainable for many families.

Main conclusion

Extending the suspension of VAT on new buildings would actually be a measure to protect the market from a new price surge. And the possible elimination of capital gains tax would simplify transactions and reduce uncertainty for sellers.

But this does not solve the main problem: housing in Greece is already too expensive in relation to income. Tax breaks can keep the market from being shocked further, but they won’t make apartments affordable on their own. This requires not only tax deferrals, but more supply, normal incomes and a construction policy that works not only for the investor, but also for the person who simply wants to buy a house and not join a mortgage cult.

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