Greece plans dual tax relief for real estate sector

The Greek government is planning a dual tax relief measure for property owners as part of new housing programs. The strategy aims to increase the availability of housing in the market, with a specific focus on social housing.

Key proposals include reducing Value Added Tax (VAT) and freezing the 24% VAT on the sale of new properties through 2027. This would provide tax incentives to construction companies to build homes intended for long-term lease at affordable or social rental rates. This initiative is part of the National Housing Policy Strategy 2026-2035.

The European Union has signaled support for this direction through a directive that allows for reduced VAT rates on the provision and construction of housing within the framework of social policy. If adopted, buyers of new properties would continue to be subject only to a 3% transfer tax, potentially saving significant amounts on purchase costs.