New-Build VAT vs Transfer Tax in Greece: What Buyers Pay in 2026

When does a newly built property attract 24% VAT?

Greek VAT law has a special regime for certain transfers of newly constructed buildings.

Under Article 8 of Law 5144/2024, the Greek VAT Code, a qualifying property supply can fall within VAT when completed or unfinished buildings, or relevant rights associated with them, are transferred before their first use.

The rules generally concern buildings whose construction permit was issued on or after 1 January 2006. A permit revised from that date can also be relevant where construction had not begun before the revision.

For this purpose, "first use" can include occupation by the owner, use for the owner's own purposes, leasing or another form of actual use after construction.

The seller must also be a person carrying out a qualifying VAT-taxable activity, such as a developer constructing properties for sale.

Sources: Greek Ministry of National Economy and Finance — VAT on Property and VAT Code, Law 5144/2024, Article 8.

Does every home built after 2006 attract VAT?

No.

The construction date alone does not determine the tax.

The analysis must also consider the seller's VAT status, the building permit, whether a qualifying first use has occurred and whether the developer's VAT suspension applies.

For example, a recently built apartment resold by a private owner after residential use is not automatically treated in the same way as its original sale by a developer before first use.

Similarly, a building that looks new because it was recently renovated is not necessarily a new building for VAT purposes.

What this means for a buyer: Do not accept "new build" as a sufficient tax classification. The property and the transaction must qualify under the relevant legal rules.

What is Greece's VAT suspension for new-build property?

Greece introduced a temporary system allowing developers to suspend VAT on qualifying sales.

The purpose is to permit eligible newly built properties to be transferred under the property-transfer-tax regime rather than charging VAT on the property sale.

The current statutory framework appears in Article 70 of Law 5144/2024, as amended by Article 12 of Law 5246/2025.

Under the law currently in force, the suspension runs until 31 December 2026.

Importantly, the suspension is not an automatic exemption enjoyed by every property advertised as new.

The taxable developer must apply to enter the scheme.

Sources:

• Ministry of Finance — VAT Rules and Current Suspension
• Law 5246/2025, Article 12 — Extension to 2026
• Greek Government Housing Portal — VAT Suspension for New Buildings

Does the developer choose which apartments to include?

The suspension rules are broader than a developer simply selecting individual apartments on a sale-by-sale basis.

Article 70 provides that the suspension covers the developer's relevant unsold qualifying properties.

The application must be accompanied by a statement identifying the unsold properties and the associated VAT amounts requiring adjustment.

Therefore, the relevant questions include whether the developer has entered the scheme and whether the apartment being purchased is covered by the applicable inventory and decision.

The process is governed by AADE Decision A.1012/2020, which includes model forms for the application, the list of unsold properties and the decision granting suspension.

Source: AADE — Decision A.1012/2020 and Official Forms.

What this means for a buyer

A verbal statement that "VAT is suspended in Greece" is not sufficient evidence of the tax treatment of a particular apartment.

Ask the developer and the notary to confirm the applicable suspension and the identification of the unit within the relevant documentation.

VAT versus transfer tax: how much is the difference?

The difference between the two tax rates is substantial.

For an ordinary taxable residential transfer under the standard property-transfer-tax regime, AADE specifies a main transfer tax of 3%, plus a municipal levy equal to 3% of the main tax.

The combined effective standard rate is therefore 3.09% of the taxable property value.

Source: AADE — Real Estate Transfer Tax.

Worked example: A €300,000 new-build apartment

Consider an illustrative purchase from a developer in 2026.

Assume:

• The property is a qualifying newly built residential apartment.
• The VAT-exclusive sale consideration is €300,000.
• For comparison, both VAT and transfer-tax calculations use a taxable base of €300,000.
• No first-home exemption or special tax treatment applies.
• The VAT suspension is valid for the apartment in the transfer-tax scenario.

Illustrative calculation, not an actual purchase quotation. The example excludes notary fees, registration charges, professional expenses and other transaction costs. Actual VAT and transfer-tax bases must be verified separately.

The difference between the illustrated tax charges is €62,730.

That does not mean a buyer is guaranteed to save €62,730 by choosing a VAT-suspended apartment.

The developer's commercial price can differ between transactions, and the VAT suspension also affects how the developer accounts for VAT paid on construction costs.

Furthermore, one advertised price may already include VAT while another may exclude it.

Comparing the two tax scenarios only makes sense when the underlying price and tax bases have been clearly identified.

What this means for a buyer

Before comparing properties, ask whether each advertised price is VAT-inclusive, VAT-exclusive or subject to property transfer tax.

Without that distinction, two apparently similar asking prices may represent different total cash requirements.

Is 24% VAT charged on top of the advertised property price?

That depends on how the developer has quoted the price.

A developer may advertise a price that includes VAT or state a VAT-exclusive amount to which the applicable VAT will be added.

These are not interchangeable.

Two ways of quoting the same VAT-taxable purchase

Assume, for illustration, that the applicable VAT is 24%.

Alternatively, if the developer states that the total price including VAT is €300,000, the VAT component contained in that amount is approximately €58,064.52, assuming the same 24% rate and no complications affecting the taxable base.

The buyer does not add another €72,000 to a genuinely VAT-inclusive €300,000 price.

This distinction matters because the VAT treatment of real estate may involve specific valuation rules and must be calculated under the relevant tax legislation.

For a transaction-specific explanation of taxable value, see the Greek Ministry of Finance's VAT guidance.

Questions to put to the developer

Ask the seller to identify:

• The agreed contractual price.
• Whether the amount includes or excludes VAT.
• Whether the transaction will instead be subject to property transfer tax.
• The relevant tax calculation basis.
• Whether additional amounts could become payable if the tax regime changes before completion.

Do not rely on the expression "all taxes included" without an itemised written explanation.

Will the VAT suspension continue in 2027 and beyond?

This question is particularly important for buyers considering an off-plan property or a purchase completing after 2026.

As of 28 October 2026, the enacted suspension remains in force until 31 December 2026.

There have been two important subsequent developments, but they must be distinguished from enacted legislation.

1. September 2026: Government policy announcement

In September 2026, the Greek government announced a package of housing measures that included plans to maintain the suspension of VAT on new buildings during 2027–2030.

The announcement describes the government's policy direction.

It is not, by itself, proof that the existing statutory deadline has already been extended to 2030.

Source: Greek Government — September 2026 Economic Measures.

2. October 2026: Draft legislation proposing a 2027 extension

On 18 October 2026, the Ministry of National Economy and Finance published a new tax bill for public consultation.

The consultation is scheduled to end on 1 November 2026, with legislation intended during November.

Article 17 of the draft proposes extending the VAT suspension until 31 December 2027.

The proposed amendment would also extend existing suspension decisions that remain effective through 2026.

The provisions concerning the developer's input-VAT adjustment and related obligations are not removed.

Sources:

• Ministry of Finance — Public Consultation Announcement, 18 October 2026
• Taxheaven — Article-by-Article Analysis of the October 2026 Draft

What is law, and what is still proposed?

The position could change following parliamentary approval, amendments or subsequent legislation.

What this means for a buyer

If an off-plan purchase is expected to complete in 2027, do not rely solely on the developer's assurance that the suspension will continue.

Ask your lawyer and notary to confirm the law applicable at completion, and ensure the contract addresses who bears any additional tax if the applicable regime changes.

Could some foreign buyers pay 15% transfer tax on new builds in 2027?

Potentially, yes — under a separate draft measure.

The October 2026 tax bill contains another provision that could materially affect some foreign buyers.

Article 16 proposes increasing the main property transfer tax to 15% for a residential purchase by an individual who is tax resident outside the EU and EEA, with application to final purchase contracts from 1 July 2027.

Under the proposed wording, the relevant test is tax residence at the legally specified time, rather than passport nationality alone.

The proposed 15% main tax, combined with the existing municipal levy of 3% on the main tax, would produce an effective charge of 15.45%, assuming the legislation is enacted without a change affecting that calculation.

This is separate from the proposal to extend the new-build VAT suspension.

Sources:

• Greek Ministry of Finance — October 2026 Tax Bill Announcement
• Taxheaven — Proposed Amendments to Property Transfer Tax and VAT

Why do these two proposals need to be considered together?

If a qualifying newly built home is sold under a valid VAT suspension, property transfer tax applies instead of property VAT.

That means the buyer's transfer-tax treatment becomes especially important.

Under the October draft's wording, a non-EU/EEA tax-resident individual buying a home under the suspended-VAT regime could potentially face the proposed higher transfer-tax rate for a final deed executed from July 2027.

However, the precise interaction must be confirmed against the final enacted provisions and the transaction's facts.

Worked example: Different tax scenarios for one hypothetical apartment

Assume a newly built apartment with a taxable value of €300,000.

These are separate scenarios, not three taxes charged together. The proposed higher-rate scenario assumes the October draft becomes law, the buyer qualifies for the higher rate, a valid VAT suspension applies and the taxable base is €300,000. These assumptions must not be treated as settled law.

For a buyer who is tax resident in the United Kingdom, United States, Israel or Switzerland, the draft's tax-residence test could be relevant.

For a buyer tax resident in Germany, the Netherlands or another EU/EEA country, the proposed higher-rate test would not apply on the current wording.

Nationality by itself does not determine the result.

What this means for a buyer

A foreign buyer expecting completion in the second half of 2027 should check both the new-build VAT suspension and the proposed higher transfer-tax regime.

Confirm the tax-residence position, applicable tax treatment and any transitional rules with a qualified Greek tax adviser before entering a binding commitment.

Neither proposed change should be represented as enacted law until it has passed through the legislative process.

For the wider transfer-tax explanation, see Property Transfer Tax in Greece.

Can a developer pass VAT-related costs to the buyer even when VAT is suspended?

The suspension changes the legal VAT treatment of the property sale. It does not mean that VAT disappears from every aspect of the construction business.

A developer may have paid VAT on construction materials and services.

Article 70 of the VAT Code provides rules restricting the deduction of input VAT during the suspension and requiring adjustment of previously deducted input VAT when a suspended property is supplied.

AADE has issued implementing rules and explanatory guidance.

Sources:

• Law 5144/2024, Article 70 — VAT Suspension and Adjustment
• AADE — Decision A.1013/2020 on Input-VAT Adjustment
• AADE — Circular E.2221/2021

These are obligations within the developer's tax accounting.

They do not automatically create a second property-purchase VAT charge that the buyer must pay to the tax authority.

However, a developer's commercial pricing can reflect construction expenses, taxes and other costs.

This creates an important distinction.

The tax charged on the buyer's acquisition is not the same thing as the developer's total underlying costs.

What if the developer asks for a separate "VAT adjustment" payment?

Ask for a written explanation identifying the legal and contractual basis of the charge.

The fact that a developer has input-VAT adjustment obligations does not automatically establish a separate statutory liability of the buyer.

Any proposed reimbursement or price adjustment should be reviewed before acceptance.

This is especially relevant where the preliminary contract was negotiated under one tax regime and the transaction will complete under another.

What about first-home tax exemptions?

Greek law provides exemptions in qualifying first-residence situations.

The Ministry of Finance states that supplies of property are exempt from VAT for beneficiaries of the relevant first-home property transfer-tax exemption.

Source: Ministry of Finance — First-Home VAT Exemption.

AADE also publishes eligibility rules for first-home transfer-tax exemptions, including nationality or residence categories, housing needs, property rights and the requirement to reside permanently in Greece or intend to settle there within two years.

Source: AADE — First-Residence Transfer Tax Exemption.

Does buying your first Greek property qualify?

Not automatically.

A holiday home is not automatically a qualifying first residence.

For example, a person living permanently abroad who buys their first apartment in Greece solely for occasional holidays should not assume that the exemption applies.

Nor should the buyer assume that first-home eligibility is determined solely by whether they have previously owned property in Greece.

The applicable conditions must be examined in full.

What this means for a buyer

Do not deduct a first-home tax exemption from the budget unless the notary or a qualified Greek tax adviser has confirmed eligibility and the applicable tax treatment for the transaction.

What should you ask the developer before paying a deposit?

For an off-plan or new-build purchase, a buyer should obtain the essential tax information before signing a preliminary agreement or paying a significant deposit.

A useful request should cover the following.

The developer may provide technical information, but the buyer's lawyer and notary should verify the tax and contractual significance.

A useful written question

"Please confirm whether this specific property will be transferred under the developer's approved VAT suspension or under the VAT regime, provide the relevant documentation, and state the final contractual price and applicable tax treatment in writing."

That question is more useful than asking only whether the property is "VAT free".

What happens if an off-plan purchase is delayed?

An off-plan transaction may involve a reservation or preliminary contract months before the final notarial deed.

Construction delays, missing documentation, financing issues and administrative procedures may shift completion beyond the originally planned date.

If a relevant tax regime changes during that period, the buyer's final acquisition cost could change.

Consider a hypothetical timeline:

For this transaction, the September 2027 date could become relevant to the proposed VAT suspension extension and the proposed higher transfer-tax rate.

A deposit paid before a statutory change does not automatically establish that the earlier tax treatment applies to the final transfer.

The precise tax consequences depend on the applicable legal rules and contractual structure.

What should the preliminary contract address?

The buyer's lawyer should examine whether the agreement clearly states:

• The agreed price and whether it includes VAT.
• The tax regime assumed when the price was negotiated.
• Who bears additional taxes if the applicable law changes.
• Whether the price may be adjusted.
• The completion deadline and permitted extensions.
• What happens if the developer cannot provide the documents required for transfer.
• The buyer's rights if the project is delayed or the transaction does not complete.

There is no sensible universal clause to insert into every contract without examining the particular transaction.

The objective is to identify and allocate the financial risk before a dispute arises.

For related issues, see The Property Buying Process in Greece.

Does transfer tax replace the other costs of buying a new build?

No.

The choice between VAT and transfer tax addresses one category of acquisition taxation.

The buyer must still account for other expenses applicable to the transaction.

These can include notary remuneration, property registration, legal advice, engineering services, translations, powers of attorney, and any separately agreed brokerage fee.

They should not be hidden inside a generic percentage labelled "purchase taxes".

For a buyer comparing new-build and resale properties, the appropriate starting point is the total cash required to acquire the property, not one tax rate in isolation.

See Costs of Buying Property in Greece for the wider framework.

Does the VAT suspension mean the new building is legally compliant?

No.

The seller's VAT treatment is a tax question.

It does not establish that the building's permits, drawings, ownership structure or construction comply with the applicable requirements.

The buyer still needs appropriate legal and technical checks.

Depending on the property, these can involve the building permit, approved plans, construction status, Electronic Building Identity, cadastral records, ownership documents and relevant restrictions.

Tax treatment and building legality must be verified separately.

A property may be correctly classified for VAT purposes while still presenting legal, technical or construction-quality issues.

Likewise, an attractive tax outcome says nothing about whether the agreed price is reasonable.

Common questions

Does every new-build home in Greece attract 24% VAT?

No. The VAT treatment depends on the applicable statutory conditions and whether the developer has entered the suspension scheme. Under an approved suspension, property transfer tax applies instead of VAT.

Is VAT automatically suspended until 2030?

No. As of 28 October 2026, the law in force provides for suspension through 31 December 2026. The October 2026 draft proposes extending it to the end of 2027, while the government's broader policy announcement refers to 2027–2030. These are different legal statuses.

Can a foreign buyer use the VAT suspension?

The suspension concerns the tax status of the qualifying developer and properties, not a special discount restricted to Greek citizens. But the buyer's own tax circumstances can affect applicable transfer-tax exemptions or future higher-rate provisions.

Can VAT and property transfer tax both be charged on the same ordinary acquisition?

They are generally alternative tax regimes for the property supply. When VAT applies to a qualifying property transfer, the corresponding ordinary transfer tax is not also charged. When VAT is suspended under the applicable scheme, the relevant transfer tax applies instead.

Can I assume that a newly built apartment with a lower tax bill is a better investment?

No. Tax is one part of the acquisition cost. The actual purchase price, property quality, construction risk, location, ongoing expenses and comparable market evidence require separate evaluation.

What this guide cannot establish

This article cannot determine the definitive VAT or transfer-tax treatment of a specific apartment without its actual legal and tax documentation.

It cannot establish whether a developer has obtained the relevant suspension, whether a particular unit is covered, or whether a buyer qualifies for an exemption.

Nor can it determine the outcome of legislation still undergoing public consultation.

The final tax position should be confirmed by the notary and a qualified Greek tax adviser using the law in force on the relevant date and the facts of the particular transaction.

Related guides

• Property Transfer Tax in Greece — the standard rate, taxable value and proposed 2027 changes.
• Objective Value in Greece — why administrative tax values can differ from purchase prices.
• Costs of Buying Property in Greece — the complete acquisition-cost framework.
• Notary Fees in Greece — the separate cost of preparing the transfer deed.
• Property Due Diligence in Greece — legal, technical and market-evidence checks.
• Documents to Request Before Paying a Deposit — what to establish before becoming financially committed.

Considering a newly built property in Greece? Establish the developer's actual tax regime and obtain an itemised acquisition budget before signing.

The Greek Property Report is independent of property developers, estate agencies and transaction commissions. Our buyer-side research distinguishes tax information, market evidence and legal or technical risks. It does not replace a notary's tax calculations or a qualified professional's transaction-specific advice.