Greece New Build VAT Suspension 2026: Complete Guide

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

If the suspension is not renewed by the Greek parliament, 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 whatever rate applies at the time of the notarial deed. Buyers targeting new-build properties should aim to complete the deed in 2026 if possible, and should seek legal advice on the contractual VAT-risk allocation if completion is expected to fall into 2027.

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

Yes. The VAT suspension on new residential construction was first introduced in 2010 as a crisis-era stimulus measure. It 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 and buyers should not rely on an assumed renewal.

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

Yes. There is no rule preventing a Golden Visa qualifying purchase from benefiting from the VAT suspension. 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.

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

In a mixed-use development (residential plus commercial floors), 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. Your lawyer should review the unit's classification in the building permit.

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.

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.

How Much Does the Suspension Save You?

The financial impact of the suspension is best understood by direct calculation. The table below shows the VAT cost, transfer tax cost, and net saving at four indicative price points.

Purchase Price	24% VAT (without suspension)	3.09% FMA (with suspension)	Saving
€250,000	€60,000	€7,725	€52,275
€400,000	€96,000	€12,360	€83,640
€500,000	€120,000	€15,450	€104,550
€800,000	€192,000	€24,720	€167,280

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.

Which Properties Qualify for the Suspension?

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:

Property Type	VAT Applies?	Suspension Covers?	Tax Currently Paid
New-build residential, permit post-Jan 2006, first sale	Yes	Yes	3.09% FMA
New-build commercial / retail	Yes	No	24% VAT
Resale residential (any age)	No	N/A	3.09% FMA
Land plot (no permit)	No	N/A	3.09% FMA
New-build, permit pre-Jan 2006	No	N/A	3.09% FMA
New-build residential, second or later sale	No	N/A	3.09% FMA

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.

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.

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:

Year	Residential Permits Issued	VAT Suspension Status
2010	52,400	First introduced
2015	5,100	Suspension active
2020	15,300	Suspension active
2023	28,700	Suspension active
2024	31,200	Suspension active
2025	34,100 (est.)	Suspension active
2026	Active pipeline	Suspension active (confirmed)

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

What Changes If the Suspension Lapses in 2027?

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.

Practical Steps for Buyers in 2026

If you are buying a new-build in Greece this year:

Confirm the building permit date with your lawyer before any payment. A permit dated before 1 January 2006 means the property cannot attract VAT and transfer tax applies regardless, this is not a suspension benefit, it is a permanent rule.
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.
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.
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.
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.

Buyer scenarios for greece new build vat suspension 2026

Golden Visa buyer (€400K–€800K): Prioritise Attica or approved regional tiers, certified 120m² usable area, clean engineer certificate, and LTR lease assumptions only. Budget 8–12% purchase costs on top of price.

Yield-focused investor: Model net yield after ENFIA, flat 15% rental tax (or progressive scale if elected), 20–25% management, and 4–6 weeks vacancy. Compare gross 4–6% Riviera LTR with your home-market net benchmark.

Cash lifestyle buyer: Accept lower nominal yield for walkability, schools, and flight access. Stress-test FX on EUR entry and future exit; Greece CGT remains suspended but not guaranteed indefinitely.

Apply this decision framework to greece new build vat suspension 2026 before you sign a preliminary agreement.

Case Study: The Financial Impact of the 24% VAT Suspension through 2026

To understand the massive tax savings currently available to buyers of new-build properties in Greece, let let us compare two identical new-build apartments under different tax regimes:

Apartment A (Standard Tax Code): A brand-new 120m² apartment in Glyfada priced at €600,000, subject to the standard 24% Value Added Tax (VAT).
Apartment B (Active VAT Suspension): The same apartment, purchased under the active VAT Suspension program (extended through 31 December 2026), subject to the standard 3.09% Property Transfer Tax (FMA).

Here is the financial comparison and tax savings breakdown:

Apartment A Total Cost: €600,000 + 24% VAT (€144,000) = €744,000.
Apartment B Total Cost: €600,000 + 3.09% FMA (€18,540) = €618,540.
Total Tax Savings for Buyer B: €125,460.

This case study illustrates that the VAT suspension effectively lowers the acquisition cost of new-build properties by approximately 17%, making them highly competitive with resale properties.

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

When purchasing a new-build property, ensure your legal team verifies the following tax clauses:

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.
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.
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.

Frequently Asked Questions

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

No. Greece extended its suspension of 24% VAT on new residential construction through 31 December 2026. During the suspension, buyers pay the standard 3.09% FMA property transfer tax instead. This means the tax cost on a qualifying new build is currently identical to buying a resale property, approximately 3.09% of the higher of sale price or government objective value.

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.