Real Estate Taxation in Greece for French Nationals: Local Taxes, Capital Gains, and Tax Treaty

Published on June 9, 2026 and written by Cyril Jarnias

For a French person investing in real estate in Greece, the tax landscape is both attractive and confusing. Between the suspension of the capital gains tax, reduced transfer tax, local property tax (ENFIA), rental income taxation, and the new Franco‑Greek tax treaty, the framework has changed significantly since 2023. The challenge is twofold: understanding what you pay in Greece, and what France may still claim.

Buying a Property in Greece: Transfer of Ownership, VAT, and Initial Taxes

Entry into the Greek tax system occurs at the time of property acquisition. A major peculiarity of the Greek system is the central role of the transfer tax, with VAT largely suspended on new builds, which significantly reduces the tax burden at purchase for French buyers.

The Transfer Tax (FMA) and Municipal Surcharges

The standard tax on acquiring an existing property in Greece is called the Fóros Metavivasis Akinítou (FMA). It is paid by the buyer, whether resident or non‑resident, Greek or foreign, at the same rate.

Here’s how it works: the tax is calculated on the “objective value” of the property, i.e., a tax value set by the administration, often close to or slightly below the market price, especially in the provinces. On this basis, the following apply:

– 3% transfer tax

– a municipal surcharge of 3% on this tax, i.e., 0.09% of the property value

This results in an effective rate of 3.09% of the taxable price.

It can be summarized as follows:

This tax must be paid before the signing of the final deed at the notary. Without proof of payment, the sale cannot be finalized.

Added to this are the typical notary fees (around 1 to 1.6% of the price), registration with the land registry or cadastre (generally 0.4 to 0.7%), and the agency commission (often 2 to 3% plus VAT). In total, a buyer should expect 5 to 7%, sometimes up to 7 to 10% in overall costs, taxes and fees included, on top of the price.

VAT on New Builds: A Largely “Frozen” 24%

In principle, new constructions whose permits were issued after 2006 are subject to 24% VAT (FPA) instead of the transfer tax. However, in practice, this VAT has been suspended for several years on most projects.

For a French investor, the difference is significant. For a new apartment at €300,000, 24% VAT would amount to €72,000; with the suspension, the direct tax burden at purchase is limited to around €9,270 in transfer tax. This is the main reason for the current attractiveness of Greek new builds for non‑residents.

Special Cases: Primary Residence and Fee Reductions

Greek law provides for reductions in the transfer tax for the purchase of a first home, subject to conditions of domicile in Greece, value, and size. For example, a single person may be exempted up to €200,000 for the purchase of their primary residence, and €50,000 for land. These regimes mainly benefit Greek residents; a French non‑resident rarely qualifies.

Conversely, on a professional level, certain transfers (mergers and acquisitions, land swaps required by urban planning, expropriations for public utility) may see the transfer tax reduced by half or a quarter, but these cases remain exceptional for individuals.

Owning a Property: ENFIA, Municipal Taxes, and Local Benefits

Once you become an owner, whether French or otherwise, the tax that structures Greek local taxation is the ENFIA, the “Unified Real Estate Property Tax.” It is a national, annual tax applicable to all real rights in properties located in Greece (full ownership, bare ownership, usufruct, etc.), held by individuals as well as companies.

How Does ENFIA Work?

ENFIA is not a single percentage of the property’s value, but a per‑square‑meter system, modulated by a multitude of criteria: geographic zone, “zone value” (cadastral), surface area, use (residential, commercial, vacant land), building age, floor, number of facades, etc.

For individuals, it consists of two layers:

– a main tax calculated per property

– an additional tax (or surcharge) triggered above a certain wealth threshold

The ranges are as follows:

– for buildings: approximately €2 to €16.20 per m²

– for land: from €0.0037 to €9.25 per m²

The wealth surcharge applies above a certain threshold of the total value of properties held by the same taxpayer, with progressive rates. A 2026 schedule gives the following approximate scale:

Above €500,000 in total value, an additional increase of 5 to 20% of the main tax may also apply.

For companies, the logic is similar, with a main tax per m² and a supplement of 0.55% on the overall value, at a reduced rate of 0.1% for buildings used for their own purposes.

The Role of the Municipal Tax (TAP)

Alongside ENFIA, each owner pays a small municipal property tax, the TAP, corresponding to 0.025% to 0.035% of the objective value of the property. This tax is used mainly to fund public lighting and waste collection. It typically appears on the electricity bill, which often surprises new French owners.

ENFIA Reductions: Insurance, Small Villages, and Heritage

The Greek system offers multiple avenues for targeted ENFIA reductions. Three schemes are particularly relevant for investors and French retirees.

First, the reduction for homes insured against fire, earthquake, and flood. Since 2025, an insured residence qualifies for a 20% ENFIA reduction if its taxable value does not exceed €500,000, or 10% above that. The insurance must cover at least three months of the previous year; if the coverage period is shorter, the reduction is prorated.

Finally, listed historical properties may be fully exempt from ENFIA up to €400,000 in value. Temporary exemptions also exist for certain areas in difficulty or affected by natural disasters.

Keep in mind that these benefits only apply to Greek ENFIA. They have no impact on French taxation, particularly the IFI (French wealth tax on real estate), which is calculated on the net value of worldwide real estate assets held by French tax residents.

Renting Out a Property: Tax on Rental Income, 2026 Reform, and Interaction with France

For a French owner of an apartment in Athens or a house in Crete, the other major tax component is the taxation of rental income. It follows its own rules, distinct from the overall income tax, and applies to both Greek residents and non-residents.

Greek Scale for Rental Income: From 15% to 45%

Greece applies a progressive scale specific to rental income, whether from standard leases or short-term furnished rentals within certain limits. Until 2025, the structure was as follows:

– up to €12,000 in annual rents: 15%

– from €12,001 to €35,000: 35%

– above €35,000: 45%

The reform introduced by Law 5246/2025, applicable to 2026 income, adds an intermediate bracket at 25% to smooth the jump between 15% and 35%. The new scale becomes:

This change is clearly aimed at “small and medium landlords”: around 160,000 owners receiving more than €12,000 annually are expected to save up to about €1,300 per year.

Short-Term Rentals, “Professional” Status, and VAT

The Greek authorities carefully define the boundary between “civil” rental and hotel-like activity.

Income from short-term rentals (e.g., platforms) is treated as ordinary rental income, thus taxed at that scale, under two conditions: the owner does not place more than two properties in short-term rental, and does not provide services other than bed linen. As soon as they manage three properties or add genuine hotel services (daily cleaning, breakfast, concierge…), their revenue shifts to “business income”, subject to corporate income tax and, where applicable, 13% VAT.

This distinction is crucial for a French person who might own multiple tourist properties in Greece: beyond a certain volume and level of services, the Greek administration will treat them as a professional, with business registration, VAT obligations, specific accounting, and increased scrutiny.

Incentives for Long-Term Rentals: Three-Year Exemption

To support the residential rental market, Athens introduced a striking measure: a full exemption from rental income tax for three years for owners who convert a vacant or short-term rental property into a primary long-term lease.

The mechanism is based on several conditions:

– the property (up to 120 m², with an increase per dependent child of the tenant) must be leased as a primary residence for a minimum of three years

– in previous years, the property must have been declared as vacant or used only for short-term rental

– the entry period covers leases signed until December 31, 2026

If the lease is terminated prematurely or the owner returns to short-term activity during this period, the exemption is retroactively revoked. However, if a new three-year lease is signed within a few months, the benefit may be maintained until the end of the initial three-year term.

Declaration in Greece and Formal Obligations

Even as a non-resident, a French person must obtain a Greek tax number (AFM), declare their property via form E9 on the myAADE portal, and then declare their rental income via form E1 and annex E2. For short-term rentals, they must additionally:

– register each property with the AADE registry (AMA number to display on listings)

– declare each stay for the “Climate Crisis Fee” (tax per night, from €2 to €15 depending on season and type of property)

– ensure monthly submission of booking data via their accountant

Penalties for late or missed filings are significant (especially on the Climate Crisis Fee). For a French owner, it is prudent to work with a Greek accountant from day one.

Selling in Greece: A Capital Gains Regime Suspended… But Not Non‑Existent

This is the aspect that surprises investors the most: in Greece, for individuals, the real estate capital gains tax exists in the law… but it has been frozen for over ten years.

Real Estate Capital Gains: A 15% Tax Dormant

Greek law normally provides for a 15% tax on real estate capital gains for individuals, calculated on the difference between sale price and acquisition price, adjusted by certain coefficients and costs (renovations, notary fees, transfer taxes, etc.). In theory, this regime applies to both residents and non-residents on properties located in Greece.

In practice, this mechanism has been suspended since 2013. The most recent extension was confirmed by several texts, and the suspension is currently announced until December 31, 2026. As long as this suspension is in effect:

This means that for 99.99% of standard private transactions, the capital gain is de facto exempt in Greece until the end of 2026.

When Selling May Become a Business Activity

This absence of taxation does not mean anything goes. The Greek tax administration reserves the right to reclassify certain individual transactions as a business activity, particularly when:

– the seller strings together purchases and sales over short periods

– the number of transactions or volume of gains suggests they are engaging in a property trading or development business

– development work and quick resales resemble a construction-and-sale activity

What About After 2026? The Scheduled Return of 15%

If the suspension is not extended again, capital gains will become taxable again on January 1, 2027, at a rate of 15%. Some older sources mention an exemption for holdings over five years, but recent texts mainly confirm the principle of a 15% flat rate on the net gain.

For a French person targeting a sale in the coming years, this window until the end of 2026 is therefore strategic: selling before this date may avoid Greek capital gains tax entirely. How France will treat the gain, under the bilateral tax treaty, remains to be seen.

France–Greece Tax Treaty: Who Taxes What, and How to Avoid Double Taxation?

Beyond Greek tax itself, French investors must contend with the new tax treaty signed on May 11, 2022 between France and Greece, which entered into force on December 30, 2023. It replaces the 1963 treaty and fundamentally modernizes the allocation of taxing rights.

General Principle: Real Estate Is Taxed Where It Is Located

For real estate income and capital gains, the treaty applies a very clear principle: priority goes to the state where the property is located.

Concretely:

– rental income from a property in Greece is taxable in Greece

– capital gains from the sale of real estate in Greece are taxable in Greece

– gains from the sale of shares in a company whose value is “principally” derived from real estate in Greece are also taxable in Greece, with real estate predominance assessed over the 365 days preceding the sale

– other capital gains (e.g., on ordinary securities) generally fall under the tax jurisdiction of the seller’s state of residence

The treaty therefore expressly recognizes Greece’s right to tax Greek real estate capital gains, even if the seller is a French tax resident. But this does not mean France automatically renounces all taxation.

How France Eliminates Double Taxation: The Tax Credit

On the French side, the new treaty generalizes the tax credit method. For a French resident who owns a property in Greece:

In practical terms, this means that Greek rents increase the French reference income (and thus may influence marginal rates on other income), but they do not suffer strict double taxation, since the Greek tax is deducted.

The same mechanism applies to capital gains in theory. The treaty stipulates that real estate capital gains are taxable in the state where the property is located (Greece). If Greece actually taxes the gain, France must grant a tax credit that wholly or partially offsets the double charge.

However, the new element is that certain gains that were not taxed in France under the old treaty are now taxable. This is particularly the case for real estate capital gains realized by persons domiciled in France on the sale of a property located in Greece: the treaty does not prevent France from considering this gain in its own tax, while granting a credit for any Greek tax paid.

Now, during the suspension period of capital gains in Greece, the French resident could find themselves in a paradoxical situation:

In other words, during the Greek suspension period, the real estate gain realized in Greece by a French resident may end up being taxed only in France, under the French real estate capital gains regime for non‑residents de facto, with its own rates and allowances. This interpretation is already mentioned in commentary: “certain gains that were not taxable in France become taxable,” and the example of foreign capital gains is explicitly cited.

Rental Income and Treaties: The Typical Case of a French Landlord in Greece

Let’s take a simple example: a taxpayer who is fiscally resident in France and owns an apartment rented out in Athens.

– In Greece, they pay tax on rental income under the Greek scale (15–25–35–45%), as well as ENFIA and TAP

– In France, they are required to declare these rents on form 2047, then on form 2042, as rental income, even though they have already been taxed in Greece

– The French administration calculates the theoretical French tax on these rents under French rules (micro‑foncier or actual basis) and then grants a tax credit equal to the Greek tax, up to the limit of the French tax due on that same income

In practice, two cases can occur:

In all cases, the declaration remains mandatory. France has aligned its practice with a system where the former “flat‑rate tax credits” or notional credits attached to the old treaty have been replaced by credits strictly limited to the foreign tax actually paid.

Real Estate‑Dominated Companies: Capital Gains on Shares and Greek Taxing Rights

Another important point in the new text: the sale of shares or units in companies whose value is derived mainly from real estate located in Greece (“real estate‑dominant” companies) is treated as a Greek real estate capital gain. The state where the property is located retains the right to tax the gain, even if it is on securities and not on the property itself.

The treaty specifies that “real estate predominance” is assessed over the 365 days preceding the sale, and certain properties used directly by the company for its operational activity may be excluded from the calculation.

For a French person structuring their Greek investment through a company, this rule signals that, even through a holding company, Greece retains fiscal oversight over capital gains on disposal.

French Resident in France, Investor in Greece: Points to Watch

From a French perspective, an investor who remains a French tax resident while owning real estate assets in Greece faces several layers of tax and reporting obligations.

IFI: Greek Real Estate Included in the French Tax Base

The French Impôt sur la Fortune Immobilière (IFI) (Wealth Tax on Real Estate) is based on the net value of all real estate assets and rights held by a tax household, as of January 1 of the year, in France and abroad, when this wealth exceeds €1.3 million.

A French tax resident must therefore include the value of their Greek properties (houses, apartments, land, shares in real estate companies, etc.) in their IFI base, after deducting related debts. The France–Greece tax treaty does not cover IFI; there is therefore no international tax credit to reduce it.

Exit Tax, Greek Non‑Dom Regime, and Change of Residence Strategy

The research report also mentions the possibility for a French entrepreneur or rentier to move their tax residence to Greece to benefit from the Greek “non‑dom” regime (Article 5A of Law 4646/2019): an annual flat tax of €100,000 on all foreign‑source income, for up to 15 years, regardless of its amount. Under this regime, an additional €20,000 per integrated family member is added.

This type of strategy concerns only a limited profile with large international incomes (above €450,000 per year, the threshold at which the flat tax generally becomes more advantageous than the normal Greek scale). It also requires managing the exit from France, with the “exit tax” on unrealized capital gains, the question of the tax household, economic interests, etc.

For the vast majority of French people simply non‑resident in Greece and remaining resident in France, this engineering does not come into play, but it illustrates how the France–Greece combination can serve as a wealth planning lever.

Practical Summary for a French Person Investing in Greek Real Estate

Pulling these elements together, we can outline the typical tax profile of a French investor in the ” Real Estate Taxation in Greece for French People: Local Taxes, Capital Gains, and Tax Treaty.”

– 1. At purchase, the Greek tax burden is moderate:

– no distinction based on nationality

– FMA transfer tax at 3%, municipal surcharge 0.09%, total 3.09%

– 24% VAT largely suspended on new builds, replaced in practice by the same transfer tax of 3.09%

– notary, registration, and agency fees bring the overall cost to between 6% and 10% of the price

– 3. On rental income, a distinct but clearly defined Greek tax:

– specific scale from 15% to 45%, with an intermediate bracket at 25% as of 2026

– same regime for residents and non‑residents

– classification as “real estate” for small short‑term rentals, but shift to business activity (and potentially VAT) as soon as the offering becomes significant or hotel services are provided

– full three‑year exemption scheme for owners who convert vacant or tourist properties into long‑term primary residence leases

– 5. In France, the new tax treaty regulates but does not eliminate French tax:

– Greek rents must be declared in France, but benefit from a tax credit equal to the tax paid in Greece (limited to the corresponding French tax)

– Greek real estate capital gains are in principle taxable in Greece; if Greece actually taxes them, France must grant a tax credit

– as long as Greece suspends its tax, France may consider the gain taxable, with a zero credit, resulting in the French resident bearing the sole burden of the capital gains tax

– French IFI applies fully to Greek properties owned by French tax residents, with no treaty reduction mechanism

The key to taking advantage of this situation lies in careful planning: timing of acquisitions and disposals relative to the Greek suspension, articulation of Greek rents with French tax brackets via the tax credit, and possible longer‑term thinking about tax residence for the largest estates. In any case, the French investor must think in a France–Greece pair, not in a silo, so that the Greek tax promise is actually reflected in their overall budget.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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