The Greek Government and the Ministry of Finance have gone ahead with comprehensive regulations in real estate and income tax legislation directly informing property owners and Greece Golden Visa investors. Along with the implemented legal updates; many critical rules, ranging from income tax brackets to VAT exemption periods and capital gains tax to ENFIA reductions, have been reshaped.
So, what was the situation like in the Greek tax system in the past, and how has it changed with the new decisions? Here is all the official details and old-new tax comparison guide that investors need to know.
Summary Comparison Table: What Has Changed?
| Tax Item | How It Was Previously? | How It Is Now with the 2026 Update? | Impact on the Investor |
|---|---|---|---|
| Rental Income Tax | Income between €12,000 – €35,000 was taxed directly at 35%. | A new 25% bracket was added in between (€12,000 – €24,000 is now taxed at 25%). | Advantage: Tax burden lightened for mid-segment rental incomes. |
| New-Build Property VAT Rate | A 24% VAT rule applied to new buildings (the moratorium period was expiring). | The 24% VAT exemption has been officially extended until December 31, 2026. | Advantage: Instead of 24% VAT, only a 3.09% transfer tax is paid on new projects. |
| Capital Gains Tax | A 15% value-added tax on property sales was pending implementation. | The 15% Capital Gains Tax has been suspended until December 31, 2026. | Advantage: No tax is paid on property sales profit. |
| ENFIA Property Tax | A standard ENFIA tariff was applied to every property. | Up to a 20% ENFIA discount was introduced for residences with disaster insurance. | Advantage: Cost savings on annual property tax. |
| Airbnb / Short-Term Rental | Golden Visa properties could be freely rented out via Airbnb. | Short-term rentals under 60 days are strictly prohibited for Golden Visa properties. | Restriction: In case of violation, a €50,000 fine and risk of residence permit cancellation (only long-term rental is permitted). |
Rental Income Tax Has Changed: The 25% New Tax Bracket is in Effect!
The regulation that pleased Golden Visa investors earning rental income from real estate in Greece the most was made in income tax brackets.
- How Was It in the Past? While rental incomes up to €12,000 annually were taxed at 15%, the portion exceeding €12,000 directly entered a high tax bracket such as 35%.
- How Is It Now? With the new tax scale put into effect by the Ministry of Finance, a 25% middle bracket was added in between, and current rental income tax brackets were rearranged as follows:
- Between €0 – €12,000: 15%
- Between €12,001 – €24,000: 25% (Newly added advantageous bracket)
- Between €24,001 – €35,000: 35%
- €35,001 and above: 45%
Example Scenario: An investor with an annual rental income of €20,000 was paying 35% tax (€2,800) for the remaining €8,000 above €12,000 in the old system; with the new regulation, they will pay 25% on this amount (€2,000) and provide an annual net tax saving of €800.
24% VAT Exemption in New Projects Extended Until December 31, 2026!
- How Was It in the Past? According to Greek legislation, 24% VAT had to be paid on new residential units with building permits issued after 2006, but the government postponed this rule with temporary moratoriums to support the construction sector.
- How Is It Now? With the latest official decree published, the VAT exemption on new residences has been extended until December 31, 2026. Thus, whether you buy a new property from an older or a primary/launch project, you will continue to pay only 3.09% transfer tax (FMA) by fixing your deed tax.
Capital Gains Tax (15%) Suspended Again
The postponement decision for the Capital Gains Tax, closely followed by investors who want to sell their real estate and make a profit, has been renewed.
- How Was It in the Past? The article of law stipulating a 15% tax on the profit difference between the purchase price and the sales price of the property was in a postponed state.
- How Is It Now? In order to protect market liquidity and foreign investment flow, the 15% Capital Gains Tax has been re-suspended until December 31, 2026. No capital gains tax will be taken from the profits of properties sold until this date.
20% Insurance Discount Incentive for ENFIA (Annual Property Tax)
A special discount opportunity was granted to property owners in the ENFIA property tax paid every year in Greece.
- How Was It in the Past? All property owners were paying the ENFIA tax calculated according to the square meters, age, and regional objective value of the real estate at the standard tariff.
- How Is It Now? Pursuant to Law No. 5045/2023, homeowners who fully insure their property against natural disasters (earthquake, fire, flood) through an authorized insurance company are granted an ENFIA discount of up to 20%. This discount is applied as 20% for those under €500,000 objective value and 10% for those above.
ATTENTION: Airbnb and Short-Term Rental Ban Has Become Official!
Alongside the tax regulations, the administrative rule change that Golden Visa investors need to pay the most attention to occurred in rental models.
- How Was It in the Past? Real estate purchased within the scope of the Golden Visa could be rented out for touristic short-term purposes through platforms like Airbnb and Booking.
- How Is It Now? Pursuant to Article 64 of Law No. 5100/2024, renting properties acquired with a Golden Visa for less than 60 days (Airbnb, etc.) is STRICTLY PROHIBITED.
- Penalty: In case of violation of the ban, an administrative fine of €50,000 is imposed on the property owner and the investor’s residence card is immediately canceled.
- Allowed Model: Properties can only be rented out with traditional long-term (at least 1 year) residential contracts.
- Penalty: In case of violation of the ban, an administrative fine of €50,000 is imposed on the property owner and the investor’s residence card is immediately canceled.
Summary: Action Plan for Investors
While these current tax changes in Greece offer cost advantages for investors aiming to rent out their property long-term and purchase from new projects, they set clear legal limits for those wanting to do short-term rentals.
You can contact our Golden Visa Solutions expert team at any time to get detailed information about the tax optimization of your Golden Visa process, double taxation avoidance agreements (DTAAs), and title deed procedures. You can get information from our Greece Golden Visa page.
