Reduced VAT in real estate transactions

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Закон 5000/2022

Law 5000/2022 was published on December 9, 2022 and, inter alia, includes provisions governing the following:

• Extension of the possibility of inclusion in the VAT suspension regime on real estate.The possibility for developers to choose to include in the tax suspension regime is extended until December 31, 2024, so that the sale of real estate is exempt from VAT under the same conditions and with a simplified procedure. Supporting investments in the real estate market during the implementation of this measure proved to be effective and profitable. Therefore, its extension until the end of 2024 is considered necessary to strengthen the real estate market.
• Extension of the personal income tax deduction for the costs of real estate renovation. Under the new regulation, a tax credit of 40% is granted for the costs paid by citizens for the energy, functional and aesthetic renovation of their real estate, extended for two additional years. It is envisaged that the tax credit for individuals is available for real estate renovation expenses incurred before December 31, 2024, instead of the planned date of December 31, 2022, spread evenly over 4 tax years and not exceeding 16,000 euros. In order to receive a tax deduction, it is necessary to submit documents confirming expenses in the form of valid invoices and their payment by electronic means.
• The suspension of Section 41 of the Internal Revenue Code, which taxes income from the sale of real estate, is suspended until December 31, 2024.

For further information or assistance, please contact Ms. Maria Sarantopoulou, Chief Tax and Legal Advisor, and Ms. Alexandra Theologou, Associate Legal Advisor, at our Eurofast office in Greece at athens@eurofast.eu

The content of this article is intended as a general guide on this topic. It is recommended that you consult a professional regarding your specific circumstances.