Real estate prices continue their upward trend. According to the latest data from the Bank of Greece, residential property prices increased by 7.3% in the second quarter of 2025 compared to the same period in 2024
The first seven months of 2025 have shown significant contrasts for the Greek real estate market, with property sales declining while parental transfers are accelerating, and property prices continue their surge.
According to data from the Independent Authority for Public Revenue (AADE) for the period from January to July 2025, the revenue from property transfer taxes amounted to €367.43 million, compared to €385.23 million in the same period of 2024, marking a decrease of 4.62%.
The decline was even sharper in the first four months of the year, with property sales revenue falling by 17.5% compared to last year.
However, the real estate market improved in the period from May to July 2025, with property sales picking up and revenue increasing by 12% compared to the same period in 2024.
Parental Transfers on the Rise
In the first seven months of 2025, the revenue from parental gifts, donations, and inheritances reached €152.02 million, compared to €136.97 million, showing an 11% increase. The high tax exemption of €800,000 has been a significant incentive for parents and grandparents to transfer assets to their children and grandchildren.
From the beginning of the year until the end of July, over 120,000 property transfer tax declarations were submitted through the AADE's myProperty platform, covering property sales, about 60,000 declarations for parental gifts of real estate, 38,000 donation declarations, and more than 70,000 inheritance tax declarations.
By the end of August, based on the contracts uploaded to the Real Estate Transfer Value Register, more than 24,800 properties were transferred, totaling value of €2.62 billion.
According to the data of the Register, the Municipality of Athens leads the rankings, with 1,986 property sales worth over €225 million.
The most expensive property sales are found in Glyfada, Vouliagmeni, Voula, Kifisia, Palaio Psychiko, and Filothei.
VAT and Capital Gains Tax Frozen
To support the real estate market and tax revenues, the government has decided to keep the following measures frozen until the end of 2026:
- The imposition of a 24% VAT on newly built properties. The zero VAT, combined with the suspension of the reassessment of property values until 2027, is expected to act as a catalyst for the construction of more homes, while the housing crisis continues to pressure households.
With the extension of the suspension of the 24% VAT on construction, all property transactions will continue to be subject only to a 3% transfer tax.
The VAT freeze will apply to all unsold properties of the developer, from all building permits issued that concern either properties owned by the developer or properties that the developer is constructing using the exchange system, until the suspension request is made.
- The application of the 15% capital gains tax. This is a tax that burdens property sellers, and market experts have called for its complete abolition.
Although this measure was legislated in 2013 during the Memorandum period, it was never implemented due to difficulties and problems that would cause severe disruptions to the real estate market disproportionate to its revenue-generating result.
The capital gains tax is applied at a rate of 15% on the profit from the difference between the purchase price and the sale price of a property.
The tax burdens the seller of the property, while the buyer is liable for a 3% transfer tax on the value of the property.
Price Surge
Property prices continue to rise, with the latest data from the Bank of Greece showing a 7.3% increase in residential property prices in the second quarter of 2025 compared to the same period in 2024.
New homes (up to 5 years old) saw a rise of 6.8%, while older apartments increased by 7.6%, indicating that demand remains strong across all property categories.
www.bankingnews.gr
According to data from the Independent Authority for Public Revenue (AADE) for the period from January to July 2025, the revenue from property transfer taxes amounted to €367.43 million, compared to €385.23 million in the same period of 2024, marking a decrease of 4.62%.
The decline was even sharper in the first four months of the year, with property sales revenue falling by 17.5% compared to last year.
However, the real estate market improved in the period from May to July 2025, with property sales picking up and revenue increasing by 12% compared to the same period in 2024.
Parental Transfers on the Rise
In the first seven months of 2025, the revenue from parental gifts, donations, and inheritances reached €152.02 million, compared to €136.97 million, showing an 11% increase. The high tax exemption of €800,000 has been a significant incentive for parents and grandparents to transfer assets to their children and grandchildren.
From the beginning of the year until the end of July, over 120,000 property transfer tax declarations were submitted through the AADE's myProperty platform, covering property sales, about 60,000 declarations for parental gifts of real estate, 38,000 donation declarations, and more than 70,000 inheritance tax declarations.
By the end of August, based on the contracts uploaded to the Real Estate Transfer Value Register, more than 24,800 properties were transferred, totaling value of €2.62 billion.
According to the data of the Register, the Municipality of Athens leads the rankings, with 1,986 property sales worth over €225 million.
The most expensive property sales are found in Glyfada, Vouliagmeni, Voula, Kifisia, Palaio Psychiko, and Filothei.
VAT and Capital Gains Tax Frozen
To support the real estate market and tax revenues, the government has decided to keep the following measures frozen until the end of 2026:
- The imposition of a 24% VAT on newly built properties. The zero VAT, combined with the suspension of the reassessment of property values until 2027, is expected to act as a catalyst for the construction of more homes, while the housing crisis continues to pressure households.
With the extension of the suspension of the 24% VAT on construction, all property transactions will continue to be subject only to a 3% transfer tax.
The VAT freeze will apply to all unsold properties of the developer, from all building permits issued that concern either properties owned by the developer or properties that the developer is constructing using the exchange system, until the suspension request is made.
- The application of the 15% capital gains tax. This is a tax that burdens property sellers, and market experts have called for its complete abolition.
Although this measure was legislated in 2013 during the Memorandum period, it was never implemented due to difficulties and problems that would cause severe disruptions to the real estate market disproportionate to its revenue-generating result.
The capital gains tax is applied at a rate of 15% on the profit from the difference between the purchase price and the sale price of a property.
The tax burdens the seller of the property, while the buyer is liable for a 3% transfer tax on the value of the property.
Price Surge
Property prices continue to rise, with the latest data from the Bank of Greece showing a 7.3% increase in residential property prices in the second quarter of 2025 compared to the same period in 2024.
New homes (up to 5 years old) saw a rise of 6.8%, while older apartments increased by 7.6%, indicating that demand remains strong across all property categories.
www.bankingnews.gr
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