Obtaining a residence permit by investing in real estate in Greece marks the beginning of a new chapter for investors. One of the most frequently asked questions during this process revolves around the tax obligations following a Golden Visa investment. Understanding the legal and financial aspects of your investment correctly from the beginning prevents future surprises. In this article, we will cover the types of taxes you may encounter after purchasing a property, the issue of double taxation, and other essential financial details.
What Does Tax Residency Mean in Greece?
Tax residency is one of the most critical concepts determining in which country a person is liable for taxes. If you are a tax resident, your worldwide income may be taxed in Greece. If you are not a tax resident, only your Greece-sourced income is taxed. Legally, if you reside in Greece for more than 180 days, you are considered a tax resident in Greece, and you may need to pay taxes not only on your income in Greece but also on income generated in other countries.
What Are the Tax Obligations Following a Golden Visa Investment?
After obtaining a Golden Visa in Greece, the tax obligations investors face are primarily property and income-based. The main taxes include:
- ENFIA (Annual property tax)
- Rental income tax (if applicable)
- Title deed and transaction costs (during the purchasing phase)
- Potential capital gains tax in case of a sale (depending on regulations)
If the investor is not a tax resident in Greece, they are generally taxed on their Greece-sourced income. This makes the Golden Visa investment highly predictable for international investors.
Annual Property Tax (ENFIA) and Rental Income
When you purchase a property under the Golden Visa program, you are required to pay the ENFIA (annual property tax) every year. This tax varies depending on the property’s location (zone value), size, and characteristics. Therefore, the tax amount can differ for each investment.
If you choose to rent out your purchased property, you will pay a rental income tax on the earnings. In Greece, the tax rate for rental income is 15% for earnings up to €12,000 annually. The rate is 35% for earnings between €12,001 and €35,000, and 45% for earnings above €35,000. If you do not live in Greece and do not generate any income other than real estate, in most cases, no additional income tax liability will arise.
Contact us for Solena’s current projects in Athens, offering high rental yields.
Double Taxation and Earnings in Türkiye
Another common concern for investors is whether they will have to pay taxes on the same income in both Türkiye and Greece. There is a Double Taxation Avoidance Agreement between Türkiye and Greece. Thanks to this agreement, you do not pay taxes in both countries on the same income. The tax paid in one country is offset in the other. Income earned in Türkiye is not taxed in Greece.
Transparent and Predictable Tax Framework
To attract foreign capital, Greece has structured its tax system to be transparent to international standards. All costs, such as property taxes (ENFIA), rental income brackets, and property transaction fees, are clearly defined and regularly reported by independent global research platforms.
To make your investment process more predictable and to review the country’s current real estate tax rates and cost tables from an independent international source, you can refer to international resources.
Capital Gains Tax on Property Sales
Capital gains derived from the sale of real estate in Greece are generally subject to a 15% capital gains tax. However, if the property is held for at least five years, this 15% capital gains tax is completely eliminated.
However, there are some exceptional cases. In particular, if a person engages in multiple property transactions within a short period (for example, multiple sales within 2 years), this activity may be considered a commercial activity by the tax administration. In this case, the resulting gain may be taxed under income tax rather than capital gains. Since tax practices can change periodically, seeking professional consulting before a sale is highly recommended.
Inheritance Tax Advantages
Greece offers significant conveniences to investors regarding inheritance taxation. While inheritance tax rates in the country vary according to the degree of kinship, the first €150,000 is completely tax-free. For amounts exceeding this, relatively low rates between 1% and 10% are applied.
Inheritance tax rates in Greece are determined progressively based on the relationship between the heir and the deceased, as well as the total value of the inheritance. The first category consists of the closest relatives. Spouses, children, grandchildren, and parents fall into this group. These individuals:
- Are tax-exempt up to €150,000.
- Pay 1% for amounts between €150,001 and €300,000.
- Pay 5% for amounts between €300,001 and €600,000.
- Pay 10% for amounts above €600,000.
For spouses married for at least 5 years and minor children under 18, the exemption limit can reach up to €400,000.
The second category includes close relatives such as siblings, grandparents, nieces/nephews, and step-parents. These individuals:
- Are tax-exempt up to €30,000.
- Are taxed at 5% for amounts between €30,001 and €100,000.
- Are taxed at 10% for amounts between €100,001 and €300,000.
- Are taxed at 20% for amounts above €300,000.
The third category covers distant relatives, friends, and non-relatives:
- They have a tax exemption up to €6,000.
- A 20% rate applies for amounts between €6,001 and €72,000.
- A 30% rate applies for amounts between €72,001 and €267,000.
- A 40% rate applies for amounts above €267,000.
For cash donations from parents to their children (Parental Grant), amounts up to €800,000 are also tax-exempt, provided they are transferred through a bank. Additionally, the tax is calculated not on the market value of the property but on the “objective value” determined by the government.
Conclusion: Accurate Information, Sound Investment
Accurate information is the foundation of a sound investment. Real estate acquisition and the Golden Visa process in Greece are financial processes that must be managed efficiently. In the Golden Visa journey, we manage not only the property aspect but all legal and financial steps of the investment together.
If you are planning to invest in Greece, it is necessary to accurately analyze not just the property selection but also the tax liabilities. You can contact the Solena team to receive personalized tax planning and investment analysis, as well as to evaluate projects with high yield potential.
👉 Click here for detailed information on the Golden Visa application and participation process.
Frequently Asked Questions (FAQ)
Is it mandatory to obtain a tax number (AFM) in Greece?
Yes. Obtaining a Greek tax registration number (AFM) is a legal requirement to purchase real estate and initiate the Golden Visa process in Greece. All your official financial transactions, from property acquisition and opening a bank account to paying the annual property tax (ENFIA), are tracked via this number.
Do I need to file a tax return every year for my property in Greece?
If you are renting out the property you purchased, you must submit an income tax return to the Greek tax authorities each year. Even if you do not generate any income from your property, you are required to register your real estate in the tax system after the acquisition.
When and how is the annual property tax (ENFIA) paid?
ENFIA is generally calculated and reflected in the system during the spring months each year. You can pay this tax upfront in a single installment, or you have the option to pay it in installments spread over the year.
Does having a tax debt affect my Golden Visa renewal process?
Yes, it has a direct impact. When you want to renew the residence permit obtained under the Golden Visa program at the end of the 5 years, you must not have any overdue tax debt to the Greek state. Regular tracking of fiscal obligations is one of the fundamental conditions for the smooth approval of the renewal process.
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