City Properties Greece

Ownership Succession Related taxes in Greece

Taxes related to the Succession on Real Estate Property in Greece

Author: Ioannis Valmas, Attorney at Law, LLB, LLM, BSc, Managing Partner at Valmas & Associates

1a. Inheritance Tax on Real Estate Property in Greece

As a general remark it is worth noting that by virtue of the Greek Civil Code there are two different types of succession in Greece: a. intestate succession and succession by virtue of a will.
Pursuant to the Greek tax legislation, Greek Inheritance Tax is assessed on the current value of the total property inherited. Property means any kind of movable and immovable property located in Greece, regardless of the descendant’s nationality. The taxable value of real estate property inherited is the objective value (it is calculated on the basis of certain predetermined factors set by the Ministry of Finance and it is also called tax value) on the day of death of the deceased. Immovable assets located abroad are not subject to Greek Inheritance Tax, regardless of nationality and residency.
The tax rates vary, depending on the relationship between the deceased (inherited person) and his/her heirs. Tax rates are based on a progressive scale at varying coefficients. Rates thus depend on the parties’ relationship and range from 1% to 40%, while there is a tax-free amount (which depends on the proximity of the relationship which is categorized in three classes/categories). As a general rule, the closer the relationship to the deceased, the lower the tax rate. For example, in case of inheritance from the deceased individuals to their spouses or children, the respective rates range from 1% to 10%, whereas the tax-free amount is up to € 150,000.

CATEGORY A
This category includes the surviving spouse and all the descendants of the deceased, as well as his/her surviving parents. According to Law 3719/2008 in this category is also called as heir the surviving cohabitation agreement’s partner.

CATEGORY B
This category includes the third degree blood relatives, such as surviving grand-parents, brothers and sisters, nephews/nieces.

CATEGORY C
This category includes any other blood relative or non relative.

Below follows an explanatory table that can help in the calculation of tax depending of the category which the heir belongs to:

Category A. Spouse, children, grandchildren, parents

Value (€)

Tax Rate (%)

Tax (€)

Total Value (€)

Total Tax (€)

150,000

150,000

150,000

1

1,500

300,000

1,500

300,000

5

15,000

600,000

16,500

Over 300,000

10

 

 

 


Category B. Great-grandchildren, grandparents & great-grandparents, brothers & sisters, nephews/nieces

Value (€)

Tax Rate (%)

Tax (€)

Total Value (€)

Total Tax (€)

30,000

30,000

70,000

5

3,500

100,000

3,500

200,000

10

20,000

300,000

23,500

Over 200,000

20

 

 

 

Category C. All other relatives & non-relatives

Value (€)

Tax Rate (%)

Tax (€)

Total Value (€)

Total Tax (€)

6,000

6,000

66,000

20

13,200

72,000

13,200

195,000

30

58,500

267,000

71,700

Over 195,000

40

 

 

 

1B. Donation Tax & Parental Grants for Real Estate Property in Greece

The acquisition of real estate property through donation is subject to the same tax categories as inheritance tax. The respective tax return should be filed with the tax authorities before the signing of the donation contract before a notary.

Disclaimer:
Whilst every care has been taken to assure that the information contained in this document is accurate, this article is intended for informational purposes only; it is not intended to impart legal advice; readers are advised to seek independent legal advice prior to acting on any statements contained herein. The information contained in this page is in no way a substitute for the Law, which is binding only in the original Greek legislative text.

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