Reduced VAT on real estate transactions

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Law 5000/2022

was published on 09/12/2022 and, inter alia, includes provisions governing the following:

• Extension of the possibility of inclusion in the VAT suspension regime for real estate. The possibility for developers to opt for inclusion in the tax suspension regime is extended until 31.12.2024, so that the sale of real estate is not subject to VAT, with the same conditions and simplified procedure. Supporting investment in the real estate market during the implementation of this measure proves to be effective and beneficial. Therefore, its extension until the end of 2024 is considered necessary to strengthen the real estate market.
• Extension of the income tax reduction for real estate renovation costs. The new regulation provides for the extension of the 40% tax abatement for costs paid by individuals for energy, functional and aesthetic repairs to their real estate for two additional years. It is envisaged that the tax reduction for individuals is granted for real estate renovation costs incurred before December 31, 2024, instead of the planned date of December 31, 2022, spread evenly over 4 tax years and with a maximum total cost of 16,000 euros.

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

The content of this article is intended as a general guide to the topic. For specialized assistance, you should consult a specialist for your specific circumstances.