Both VAT on newly built properties and the capital gains tax on sales will remain frozen this year as well. This dual suspension not only limits tax burdens but also functions as a key support mechanism for the market, keeping transaction flows open and strengthening liquidity at a time of increased pressure on costs and financing.

In practice, the freeze of the 24% VAT on newly built properties has a direct impact on the available property stock. The Greek real estate market is not characterized by a lack of supply, but by accumulated and unevenly distributed stock: unsold newly built properties from previous years, properties that “stalled” during the crisis period, and second-hand homes that are gradually returning to the market. Without the VAT suspension, a large part of this stock would become non-competitive, as the final price for the buyer would soar, with the immediate risk of creating a new wave of unsold homes.

Under the current regime, transactions continue to be subject to a transfer tax of approximately 3%, which keeps interest active and allows the market to gradually absorb the stock. This proves crucial at a time when interest rates remain high and access to bank financing is more limited, as an additional tax shock that would lead to postponement or cancellation of transactions is avoided.

At the same time, the non-application of the capital gains tax also plays a decisive role. This tax, as provided for by law, concerns the difference between the acquisition price and the sale price of a property and would be imposed at a rate of 15%, after deducting a tax-free threshold and depreciation coefficients that reduce the taxable gain depending on the years of ownership. Although it remains legislated, its implementation has been suspended, resulting in private property transactions not being burdened with tax on profit.

This suspension facilitates the disposal of second-hand properties and prevents assets from being withheld from the market. Owners who would otherwise postpone selling choose to move now, increasing supply and keeping the transaction cycle active. In this way, artificial contraction of supply is avoided, which would further push prices upward.

A significant role in maintaining this momentum is also played by the broader climate shaped by the government’s approach. The fact that there is no adjustment of objective values on the horizon, neither for this year nor for the next, has a calming effect on the market. Transactions are carried out in an environment of predictability, without the fear that a sudden increase in objective values will drag taxes, fees, and ultimately prices themselves upward.

Experience from previous years shows that every increase in objective values affects not only taxation but gradually passes through to commercial prices as well. Sale prices adjust upward, but the same happens with rents, as owners incorporate the increased cost into the property’s yield. This is why the absence of such interventions currently functions as a factor of stability, both for buyers and for tenants.

Combined with the freeze on VAT for newly built properties and the non-application of the capital gains tax, keeping objective values at the same levels creates an environment without additional shocks. The market can gradually absorb the available property stock, transactions proceed without artificial pressures, and prices, although high, are not fueled by tax-related surprises.