Greece Set to Hike Property Tax for Foreign Investors

Greece's government is moving forward with plans to impose a 15% property transfer tax on non-European Union nationals, a move that threatens to substantially increase the cost of acquiring residential property for foreign investors participating in the country's Golden Visa program. The proposed tax hike would add tens of thousands of euros to the purchase price of properties, fundamentally altering the economics of real estate investment for international buyers.

The Golden Visa scheme has attracted considerable interest from wealthy investors globally, offering residency permits in Greece in exchange for property investments. Under current arrangements, non-EU nationals have been able to purchase property with relatively lower transfer tax burdens compared to the proposed new regime. The anticipated 15% levy would represent a dramatic shift in the tax structure, effectively making Greek real estate considerably more expensive for foreign purchasers.

Government officials have cited revenue requirements and efforts to regulate the property market as rationales for the tax increase. The change is expected to impact demand among international investors, particularly those from Asia and the Middle East who have increasingly viewed Greek property as an attractive investment opportunity in recent years.

The timing of the announcement has prompted concern among real estate professionals and investors who benefit from foreign capital inflows. Industry observers suggest the tax may redirect investment to competing countries offering similar residency programs with more favorable tax conditions, potentially dampening Greece's attractiveness as a destination for high-net-worth individuals seeking European residency.