Greece taxes a new build at 24% VAT unless the developer opts for the temporary suspension, which currently runs to the end of 2026. Off-plan deposits have no statutory escrow.
In Greece the choice between a new build and a resale is mostly a choice about tax treatment and about how much protection you have before the notary signs. The first is shaped by a temporary rule that is currently extended to the end of 2026, the second by the fact that Greek law does not force developers to protect off-plan deposits. Here is what to compare.
Tax: VAT or transfer tax
Since 1 January 2006, sales of newly built properties in Greece have as a rule fallen under VAT at the standard rate, now 24%. Since 2019 developers have had an option to suspend VAT on qualifying unsold stock, in which case the sale attracts the real estate transfer tax instead. That option, and suspensions already granted, were extended to 31 December 2026 by Law 5246/2025, published in the government gazette on 11 November 2025. The transfer tax is commonly described as 3% of the objective value plus a municipal surcharge of about 3% of the tax itself, which gives an effective rate of around 3.09%.
Two cautions. The suspension is optional for the developer, so you cannot assume a given new build uses it, and you should ask for the tax treatment in writing before you reserve. And it is currently set to end on 31 December 2026, so for a purchase that completes after that date confirm what applies. A resale is outside VAT and is taxed with the transfer tax.
What you get with a new build
A new build is the easiest route to modern insulation, layout and an energy certificate, and a recent building permit issued through the national e-adeies platform. Title passes only at the notarial deed, after completion and final inspection, and until then you hold a contractual right against the developer rather than a registered interest.
Off-plan: the part that is not protected by law
A preliminary agreement usually asks for a deposit of 10% to 20% and further payments on signing the main contract, which can bring the total paid to 30% to 40%. Unlike Spain, Greece does not require stage payments to be held in escrow or backed by a bank guarantee for private residential off-plan sales, so protection comes mainly from your contract. Some developers offer a guarantee if you ask. Greek law also knows the arravon mechanism, under which a defaulting seller may owe double the deposit, but it only works if the agreement is structured that way, so your lawyer should check the drafting.
Before paying a deposit:
- check the building permit on the e-adeies platform and that it matches the unit
- ask for a bank guarantee on deposits and negotiate it into the contract
- confirm the developer owns the land free of mortgages or has the lender's release
- fix the completion date, penalties for delay and the right to withdraw
- see the final plans, specification and the energy certificate
Resale: what it can hide
A resale is delivered immediately and sits in an area you can judge. One market guide puts resale at roughly 15% to 40% cheaper per square metre than a comparable new build, but treat that as an indication that varies by location. The cost to watch is legality. Verify that the building permit history covers every part of the property, including terraces, pools and extensions, because unpermitted works can lead to fines or demolition orders that pass to the new owner. For buildings from before 1990 an independent engineer's review of structure, moisture and systems is sensible. A valid energy performance certificate is required for sales and is valid for ten years.
A simple way to decide
- choose a new build when you value modern standards, accept the wait, and can get the VAT treatment and deposit protection in writing
- choose a resale when you want it now, in a known area, and your lawyer and engineer have cleared the permits
- compare the full cost, including tax, renovation and the energy upgrade, rather than the headline price
- if you are looking at the golden visa, check which routes the purchase has to fit, see our Greece golden visa article
FAQ
Do I pay VAT on a new build? By default at 24%, unless the developer opts into the suspension that is currently extended to 31 December 2026, in which case transfer tax of about 3.09% applies instead. Is a resale taxed the same way? A resale is outside VAT and pays the transfer tax. Are off-plan deposits protected? Not by a statutory escrow or guarantee, so negotiate protection into the contract. Can I get my deposit back if the developer fails? Only according to the contract and, if it is structured that way, the arravon rules. What documents matter most on a resale? The building permit history, the title and cadastre records, and the energy certificate.
How we help
D.H. Realting can help you compare specific options and ask the developer or seller the right questions. This article is general information, not legal, tax or investment advice. Tax rules, including the VAT suspension, change over time, so confirm the current treatment with your lawyer and the tax authority before you commit.