The government appears to have finalized the extension of the suspension of VAT on newly built properties for another year, meaning through 2026, with official announcements expected from the Prime Minister at the Thessaloniki International Fair.

This decision brings relief both to construction companies and to buyers, as the 24% VAT burden had caused serious concern in the market.

Following a proposal by the Ministry of Finance, the Prime Minister is considering maintaining the VAT freeze. As a result, transactions for newly built homes will continue to be taxed exclusively with the 3% transfer tax, at least until the end of 2026, with the possibility of an extension into 2027. Meanwhile, the capital gains tax on real estate — a 15% levy on profits from sales, calculated as the difference between purchase and sale price — has also been suspended by law until December 31, 2026.

The difference for buyers is significant: on a €250,000 apartment, VAT would amount to €60,000, whereas the transfer tax is only €7,500. The saving of €52,500 could determine whether a transaction goes through or stalls.

The measure applies to properties delivered from December 12, 2019 onwards, with provisions under decision A.1156/2024 even allowing those who had originally opted into the VAT regime to switch to the transfer tax. In such cases, refunds were possible for buyers who had already paid the 24%.

The property transfer tax (ΦΜΑ) of 3% is the basic tax paid by the buyer on every home purchase when VAT does not apply — that is, on all older homes as well as on newly built ones covered by the suspension. It is calculated on the objective value of the property (or the declared value, if higher) and is paid in a lump sum to the tax office before the contract is signed. For example, on the purchase of an apartment with an objective value of €150,000, the transfer tax amounts to €4,500. This payment is made by the buyer and is a prerequisite for the property to be registered in their name.

At the same time, the government’s economic team emphasizes that the total size of the benefits package to be announced at the Thessaloniki Fair will not exceed €1.5 billion, in order to maintain fiscal balance. Still, the extension of the VAT suspension on new builds is regarded as a strategically important measure for construction, the property market, and households seeking a home.