Greece New Build VAT Suspension 2026: Complete Guide

Quick answer: Greece extended its suspension of 24% VAT on new residential construction through 31 December 2026. During the suspension, buyers pay 3.09% FMA property transfer tax instead, the same rate as resale. On a €500,000 new build, that saves approximately €104,550. The suspension has been renewed every year since 2010; if it lapses in 2027, VAT returns at 24%.

Greece is one of the few European Union member states where you can currently buy a brand-new apartment and pay the same effective acquisition tax rate as buying a twenty-year-old resale unit. That is not an accident of Greek tax law, it is the result of a deliberate, annually-renewed political decision to keep 24% VAT off new residential construction as a demand stimulus.

For buyers, the practical implication is large. The difference between 3.09% transfer tax and 24% VAT on a mid-range Athens new build represents tens of thousands of euros. Understanding how the suspension works, which properties it covers, what triggers the full VAT rate, and what risk you carry if your completion date slips into 2027 is essential due diligence for any new-build purchase in Greece this year.

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What Is the New-Build VAT Suspension in Greece?

Under the Greek VAT Code (Law 2859/2000, Article 6), the first sale of a new residential building or unit by a developer is a taxable supply subject to VAT at the standard rate of 24%. The building permit must have been issued on or after 1 January 2006 for this rule to apply, properties with older permits are treated as outside the VAT system entirely and go through the standard transfer tax route regardless.

The 24% rate, applied to the full sale price, represents a significant acquisition cost. Greece introduced a suspension of this VAT in 2010, originally as part of the wider set of economic recovery measures. The stated rationale was to stimulate the residential construction sector, which had essentially stopped during the debt crisis period, by removing a tax barrier to new-build sales.

The suspension has been renewed by every subsequent Greek government, most recently through explicit legislative extension covering the full calendar year 2026. During any suspension period, buyers of qualifying new residential units pay the 3.09% FMA property transfer tax (Φόρος Μεταβίβασης Ακινήτων) in place of VAT. This is the same tax that applies to all resale transactions, making the acquisition cost of new and second-hand property broadly equivalent from a tax perspective.

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Under Article 6 of the Greek VAT Code the first sale of a new residential building by a developer is subject to VAT at 24% where the building permit was issued on or after 1 January 2006. Greece suspended that charge in 2010 and has renewed the suspension every year since, currently through 31 December 2026, during which a qualifying new build is taxed on transfer at 3.09% FMA exactly like a resale. The difference is large enough to change which properties are worth looking at: €52,275 on a €250,000 purchase, €83,640 on €400,000 and €167,280 on €800,000. Two conditions decide eligibility and both are verifiable before a preliminary agreement: the permit must be dated on or after 1 January 2006, and the transaction must be the property’s first sale by a developer. The rate that applies is the one in force on the day the deed is signed, not the day the contract is signed.

How Much Does the Suspension Save You?

The saving is the largest single line in a new-build purchase. On €250,000 it is the difference between €60,000 of VAT and €7,725 of transfer tax, so €52,275. On €500,000 it is €104,550. At the €800,000 Golden Visa threshold for Attica, Thessaloniki, Mykonos and Santorini the suspension removes €167,280 of acquisition tax, roughly 21% of the purchase price and more than the entire remaining fee stack combined.

| €500,000 | €120,000 | €15,450 | €104,550 |

Note: FMA is levied on the higher of sale price or government objective value (αντικειμενική αξία). The figures above use the sale price as base. In practice, the tax base may be higher if the objective value exceeds the agreed price. VAT, if applicable, is levied on the sale price. Calculations are illustrative.

The saving is particularly significant for Golden Visa buyers targeting the €800,000 threshold in Attica, Thessaloniki, Mykonos, Santorini, and islands with over 3,100 population. At that price point, the suspension reduces the total acquisition tax by €167,280, more than 20% of the purchase price.

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Which Properties Qualify for the Suspension?

Three conditions must all hold, and failing any one puts the property back on the 3.09% transfer-tax route rather than into VAT relief. The building permit must date from 1 January 2006 or later, since only post-2006 buildings enter the VAT system at all. It must be the first sale from the developer, so a resale two years later falls outside VAT entirely. And the unit must be residential: offices, retail and standalone parking floors do not benefit. Not every new-build transaction benefits. The qualifying criteria are specific:

Permit date on or after 1 January 2006. Only buildings with a permit issued under the post-2006 planning framework enter the VAT system. Older buildings, even those substantially renovated, follow the transfer tax route exclusively.

First sale by a developer. The VAT rule, and therefore the suspension, applies only to the first transfer of the property from the developer to a buyer. If a buyer purchases a new-build, lives in it for two years, and then sells, the second sale falls outside the VAT system entirely (transfer tax applies).

Residential use. The suspension covers residential units. Commercial property, offices, retail, standalone parking floors, does not benefit from the residential suspension and may carry 24% VAT in any case.

Developer as seller. The seller must be a company or individual acting in the capacity of developer. An individual who built one house for their own use and then decided to sell is unlikely to qualify as a VAT-registered developer for these purposes, though the tax authority’s position on specific cases can be complex.

The table below summarises what is and is not covered:

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VAT vs Transfer Tax: The Legal Mechanism

When VAT applies to a new-build sale, it sits alongside the purchase price in the notarial deed. The buyer pays the VAT element to the developer, who remits it to the Greek tax authority (AADE). The notary certifies payment. There is no separate FMA transfer tax in a standard VAT transaction, the two taxes do not stack.

During the suspension, the transaction reverses: FMA is due, calculated and paid through the notary in the standard way, and no VAT is charged. The developer does not collect VAT, does not remit it, and the buyer’s tax cost is exactly as it would be on a resale.

This clean substitution is why the suspension has been administratively straightforward for the market. There is no complex partial adjustment or blended rate, it is one or the other.

For a complete breakdown of all acquisition costs beyond tax, notary, lawyer, land registry, agent, and engineer fees; see the Cost of Buying Property in Greece guide.

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Off-Plan Timing and VAT Risk

For buyers purchasing off-plan, the tax status of the transaction is determined at the time of the notarial deed, not at the time of the preliminary agreement or reservation deposit. This creates a timing risk if the suspension expires before the deed completes.

A buyer who signs a preliminary agreement in October 2026 and is contractually due to complete in March 2027 faces uncertainty: if the suspension is not renewed for 2027, the deed will attract 24% VAT. Whether the buyer or developer bears that risk depends entirely on the preliminary agreement’s terms.

Key contractual provisions to look for or negotiate:

• VAT allocation clause: who pays if VAT is reinstated before deed completion?
• Completion longstop: if the developer delays completion into a post-suspension period, does the buyer have the right to rescind?
• Price adjustment mechanism: some developers quote prices inclusive of VAT on the assumption the suspension will lapse; clarify whether the quoted price is VAT-inclusive or exclusive.

For a full guide to off-plan risk and payment structures in Greece, see Off-Plan Property Greece: Complete Buying Guide. For a structured comparison of new-build and resale transactions, see Off-Plan vs Resale Greece.

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The rate that applies to a new build is the one in force on the day the notarial deed is signed, not the day the contract is signed, which puts the whole exposure on the completion date rather than on the purchase decision. On an €800,000 unit that difference is €192,000 of VAT against roughly €24,720 of transfer tax, a swing of €167,280 that a two-month construction delay can trigger. Off-plan buyers with a delivery date in late 2026 or in 2027 therefore need the risk allocated explicitly in the preliminary agreement: either the developer absorbs any VAT that becomes payable because completion slipped, or the price adjusts, or the buyer has a right to withdraw with a full refund. The suspension has been renewed every year since 2010, but a contractual clause costs nothing and an assumption costs six figures.

What the Suspension Has Meant for the Market

The sustained absence of 24% VAT on new residential sales has measurably shaped the Greek development pipeline. Developers building new residential product can price competitively against resale, because the buyer’s total acquisition cost is the same on a tax basis. Without the suspension, a new-build at €400,000 would require the buyer to pay €96,000 in VAT, making new construction effectively 21% more expensive than a resale at the same headline price.

This competitive parity has supported an active, if still thin, new-build market. According to the Hellenic Statistical Authority (ELSTAT), issued residential building permits rose 9.4% year-on-year in 2025, continuing the recovery from the low of 4,207 permits in 2014. Foreign buyer interest in new construction has grown as a result.

The table below shows the annual residential permit trend and the VAT suspension status for context:

Sources: ELSTAT residential permit data; Greek Ministry of Finance suspension orders.

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What Changes If the Suspension Lapses in 2027?

A lapse would add 24% VAT to new-build first sales from 1 January 2027, which on a €400,000 unit is €96,000 against the €12,360 of transfer tax it replaces. The suspension has been renewed without a break since 2010 and consensus expects another extension, but Greece’s fiscal position and EU VAT Directive limits make that a probability rather than a certainty. The practical exposure sits with buyers whose off-plan deed may slip past December 2026. If the Greek parliament does not renew the suspension, the effect from 1 January 2027 would be:

• New-build first sales attract 24% VAT, added to the purchase price
• Developers face a sharp increase in effective buyer acquisition cost
• New-build pricing would need to adjust downward to remain competitive with resale, or new-build demand would shift back toward resale stock
• Buyers with off-plan deeds scheduled for 2027 would face the full 24% unless their contracts protect them

The market consensus, supported by the unbroken renewal record since 2010, is that the suspension will be extended again. However, Greece’s fiscal position, EU state-aid rules (VAT suspensions have limits under EU VAT Directive provisions), and the broader housing affordability debate mean that renewal is a political decision, not an economic certainty.

Buyers completing in 2026 carry no VAT risk. Buyers completing in 2027 carry meaningful risk that is best addressed contractually with the developer before signing.

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Practical Steps for Buyers in 2026

Five checks, and the second and third are where money is actually lost. Confirm the permit date, then verify first-sale status by asking the developer for the cadastre extract showing them as current owner with no prior residential sale. Then read the preliminary agreement for VAT allocation: if completion could slip into 2027, negotiate an explicit clause on who carries the 24%. Budget at 3.09% for 2026, and plan a snagging inspection before handover. If you are buying a new-build in Greece this year:

2. Verify first-sale status. Ask the developer for the land registry extract (κτηματολόγιο) showing the current owner as the developer and confirming no prior residential sale of the unit.

3. Check the preliminary agreement for VAT allocation. If your deed completion is expected before December 2026, the risk is low. If completion may slip into 2027, negotiate a clear clause.

4. Calculate your total acquisition budget using 3.09% FMA for 2026. Use the Cost of Buying Property in Greece guide for the full fee schedule including notary, lawyer, and registry costs.

5. If it is a new build, plan a snagging inspection. The tax saving is significant, but new-build quality in Greece varies by developer. A professional snagging inspection protects you at handover. See the Snagging Inspection Greece New Build guide.

For foreign buyers going through the full purchase process for the first time, the Buy Property Greece Foreigner guide covers every step from AFM tax number to deed completion.

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The Financial Impact of the 24% VAT Suspension through 2026

While the suspension holds, a new build is taxed on acquisition at 3.09% rather than 24%, which is worth €83,640 on a €400,000 purchase and €167,280 on an €800,000 one. That is the difference between two tax regimes on the same deed, not a discount, and it applies only if the deed itself completes before 31 December 2026. Here is what the suspension is worth across three common purchase sizes:

The saving is not a discount on the property; it is the difference between two tax regimes applied to the same deed. It also explains why 78% of foreign buyers historically chose resale over new build: before the suspension, VAT made a new-build unit roughly a fifth more expensive to acquire than an equivalent resale.

This suspension applies to all properties with building permits issued after 1 January 2006, provided construction is completed and the property is sold before the 31 December 2026 deadline. Buyers targeting modern, energy-efficient apartments for personal use or the Golden Visa must act before this suspension expires to secure these substantial savings.

VAT Suspension Verification Checklist

1. Confirm Suspension Approval: Verify that the developer has obtained formal approval for the VAT suspension (αναστολή ΦΠΑ) from the local tax office (DOY) for the specific project and unit you are purchasing.
2. Building Permit Date: Ensure the property’s building permit was issued after 1 January 2006, as older permits may be subject to different tax regimes or historical liabilities.
3. Post-2026 Tax Planning: If your transaction is scheduled to close near the end of 2026, ensure your contract includes a protective clause detailing which party is liable for any additional tax if the VAT suspension is not extended into 2027.

Buyer scenarios

Whether the suspension matters to you depends on one thing: when your deed completes. On a finished unit completing in 2026 it is worth 21 percentage points of the purchase price and the decision is easy. On an off-plan unit delivering in 2027 it is a risk to be allocated in the preliminary agreement, because the rate that applies is the one in force on the day the deed is signed. The VAT suspension changes the arithmetic on new build sharply, but only for properties that qualify.

The buyer comparing new build against resale at the same price. With the 24% VAT suspension applied, a qualifying new-build unit is taxed on transfer at 3.09% like a resale rather than carrying VAT, which removes what would otherwise be the single largest line in the cost stack. That can make a nominally more expensive new-build unit cheaper in total capital than an older apartment needing renovation.

The buyer whose target property may fall outside the suspension. The relief attaches to specific categories and dates rather than to new build generally. Confirm the building permit date and the developer’s VAT treatment in writing before the preliminary agreement. A unit assumed to be VAT-suspended that turns out not to be moves the total cost by tens of thousands of euros on a €400,000 purchase.

The Golden Visa buyer using new build to clear 120 m². New build has an advantage the rule rewards: contemporary layouts declare usable area cleanly, and the Electronic Building Identity is prepared at completion rather than reconstructed from decades of amendments. Verify that the certified figure excludes balconies and parking, and that delivery is contractually tied to the habitation certificate.

Frequently Asked Questions

Is VAT currently charged on new-build property in Greece in 2026? +

How much does the VAT suspension save a new-build buyer in Greece? +

The saving is substantial. On a €400,000 new build, 24% VAT would equal €96,000; the 3.09% FMA transfer tax costs approximately €12,360, a saving of around €83,640. On a €500,000 property the saving reaches roughly €104,550. On an €800,000 Golden Visa-qualifying property, the saving is approximately €167,280.

Which new-build properties qualify for the VAT suspension in Greece? +

Qualifying properties are residential buildings or units where the building permit was issued on or after 1 January 2006, being sold for the first time by a developer. Properties sold on a second or subsequent transaction, resale apartments, land plots without a permit, and commercial property are not covered. Buyers should instruct their Greek lawyer to verify the permit date and first-sale status before signing any preliminary agreement.

What happens to new-build VAT in Greece after 31 December 2026? +

If the suspension is not renewed, the standard 24% VAT rate will apply to new residential builds from 1 January 2027. Contracts signed before the suspension ends but with deeds completing after the deadline are subject to the rate in force at the time of the notarial deed. Buyers with an off-plan completion expected in 2027 should address VAT risk allocation explicitly in their preliminary agreement.

Has the VAT suspension been renewed every year since it began? +

Yes. The VAT suspension was first introduced in 2010 and has been renewed by successive Greek governments every year since, including an explicit extension covering the full calendar year 2026. No Greek government has allowed it to lapse, and market expectations are that it will be renewed again for 2027, though this is not guaranteed.

Can the VAT suspension apply to a Golden Visa new-build purchase? +

Yes. A buyer purchasing a new-build at €800,000 in Attica under the Golden Visa programme pays 3.09% FMA rather than 24% VAT during the suspension period. The saving at that price point is approximately €167,280. The Golden Visa's own requirements, minimum thresholds, 120m² usable area rule, no short-term rental, are separate from the VAT status of the property.

Do I pay VAT or transfer tax on a new-build in a mixed-use development in Greece? +

In a mixed-use development, the VAT treatment depends on the designated use of each unit. Residential units qualifying under the suspension pay 3.09% FMA. Commercial units, offices, retail, parking sold separately as commercial, are not eligible for the residential suspension and may attract VAT at 24%. Parking spaces and storage rooms sold ancillary to a qualifying residential unit are generally treated as part of the residential transaction.