Greece Aims to Make Its Real Estate More Enticing

Greece Aims to Make Its Real Estate More Enticing

Greece is a popular destination among international real estate owners. Still, the Mediterranean country wants to lure even more foreigners. The government considers ways to make Greek properties more enticing for foreign buyers. It is also reported that there is a growing interest in Greek real estate from the colder European countries. Pensioners often include Greece into their agenda after retirement. Aware of this, the government is set to make Greece even more attractive.

Changes to the ENFIA Tax

One of the biggest question marks in Greece’s real estate market is the ENFIA Tax. This tax is also known as the unified property tax. If there is sufficient interest, Greece aims to make changes to the ENFIA.

What is ENFIA?

To recover the economy after COVID-19, Greece wants to lure foreigners by making its real estate cheaper. The country does not need a lot of advertisements. However, the ENFIA tax still creates doubts. The tax was imposed during the global crisis. Although the EUR 362 billion rescue package ended in August 2018, the tax remains. It is the biggest reason causing potential buyers to have second thoughts.

Raising the Tax-Free Ceiling of the ENFIA Tax

Greece plans to raise the ceiling of tax-free transactions. This affects the supplementary tax included in ENFIA. The change on the tax-free level will bring Greek real estate taxation down close to the EU scale.

Now, the tax-free ceiling of Greece is EUR 250,000. The government may raise the tax-free ceiling to EUR 350,000. It makes buying a property in Greece much more advantageous for the next two years. In 2022, the ENFIA tax will be under the jurisdiction of municipal authorities. Thus, the supplementary tax of the ENFIA will be abolished altogether.

A Flat Tax Rate of 7% for European Pensioners

Another strategy proposed by the government is the implementation of a flat tax of 7%. This flat tax is planned to apply to European retirees. Greeks pay taxes between 28% and 44%. 7% flat tax rate will be available if the pensioners move their tax base to Greece.

There are two conditions for eligibility for this form of taxation. First, the retirees must not have been a Greek tax resident five years before the relocation. Second, the current country of the retiree must have a dual taxation agreement with Greece.