Tax on House Sale in Greece: Current Regulations and Deferment Options

When selling a house in Greece, it's important to understand the tax implications. One of the primary taxes you must pay is the transfer tax, commonly known as PINADA, which is typically 24% of the sale price. However, this tax has fluctuations, and there are specific instances where tax deferment might be available.

Understanding the Standard PINADA Tax

The standard PINADA transfer tax in Greece is 24% of the property sale price. This tax is designed to ensure that the government receives a portion of the financial gain from the sale of a property, contributing to public revenue.

Payment Methods and Prepaid Tax

It's crucial to note that tax on the sale of a property in Greece must be prepaid. Once the sale is final, the buyer is responsible for paying the tax, which covers the entire sale price. Typically, the buyer's real estate agent or a specialized tax officer handles the payment to ensure compliance with the tax laws.

Deferment Options for New Builds

There are specific circumstances under which the PINADA tax can be deferred. During the current economic period in Greece, the tax structure allows for a differential if you purchase a newly built house. This deferment is designed to encourage the construction sector and help stimulate the economy by promoting new builds.

Conditions for Tax Deferment

To qualify for tax deferment, you must buy a newly constructed house. This means the property must be a work in progress or completed within the past few years. The inventory of unsold properties in Greece is a significant challenge, and the government is taking steps to address this issue by offering incentives such as tax deferment to buyers of new constructions.

Checking Deferment Eligibility

Before embarking on a purchase, it is essential to verify the eligibility for tax deferment with a reputable real estate agent or a tax consultant. The requirements and processes for deferment might change, and it is crucial to stay informed about the current regulations to ensure compliance and take full advantage of any available incentives.

Conclusion

Selling a house in Greece comes with specific tax obligations, primarily the 24% transfer tax known as PINADA. However, there are opportunities for tax deferment if you purchase a newly built property. Understanding these regulations is key to navigating the sales process smoothly and maximizing your financial benefit.