Introduction
When you decide to sell your property, one of the things you want to know is how much you will have to pay in taxes. A lot of people think that the seller has to pay the Property Transfer Tax.
This is not true. The person who buys the property pays the Property Transfer Tax, not the seller. The seller has to pay taxes, which we will explain here so you know exactly how much money you will get from the sale.
1. Which Taxes Apply to the Seller and Which Apply to the Buyer?
Before we look at the taxes the seller has to pay we need to understand who pays what when a property is sold.
What the Seller Pays
The seller may have to pay:
- Capital gains tax if it applies
- Property tax-related obligations, like ENFIA
- Get a Tax Clearance Certificate
- Pay taxes on business activity if this applies to them
What the Buyer Pays
The buyer usually has to pay:
- Property Transfer Tax, which’s 3% of the price
- Notary fees
- Costs for registering the property with the Land Registry or Cadastre
- Mortgage and bank fees if they need a loan to buy the property
The seller does not pay the Property Transfer Tax. This is something that a lot of people do not understand when they are buying or selling property.
2. Capital Gains Tax on Property Sales
You pay capital gains tax on the difference between what you paid for the property and what you sell it for.
The basic formula is:
Capital Gain = Sale Price. Adjusted Acquisition Value
If you make a profit you may have to pay tax.
The tax rate in Greece is 15% of the capital gain.
But the rules about capital gains tax have changed over time so you need to check what the rules are when you sell the property.
When You Have to Pay Capital Gains Tax and When You Do Not
You pay capital gains tax when you sell the property for more than you paid for it.
If you sell the property for the price or less than you paid for it you do not pay capital gains tax.
For example:
Lets say you bought a property in 2010 for €100,000. You sell it in 2025 for €90,000.
In this case you do not pay capital gains tax because you did not make a profit.
The price you paid for the property is not always the same as the price you tell the tax office. It can be adjusted according to the rules.
Example of a Capital Gains Tax Calculation
Lets look at an example:
You bought a property in 2010 for €80,000.
The adjusted acquisition value is €95,000.
You sell the property in 2025 for €150,000.
The taxable capital gain is:
€150,000. €95,000 = €55,000
If the tax rate is 15%:
€55,000 × 15% = €8,250
So the capital gains tax would be €8,250.
3. When Is a Property Sale Considered a Business Activity?
Sometimes the tax office may say that selling a property is not a private sale but a business activity.
This can happen if someone buys and sells properties regularly to make a profit.
The tax office looks at things like:
- How often you sell properties
- Why you are buying the properties
- If you are selling properties in an organized way
- If you are doing it to make a profit
If the tax office says it is a business activity you may have to pay taxes, including taxes on your business income and VAT.
4. ENFIA and Tax Clearance Certificate: Requirements Before the Sale
Before you can sell the property you have to do a few things for tax purposes.
ENFIA Property Tax Certificate
You need to get an ENFIA Property Tax Certificate, which shows that you have declared the property for tax purposes and that you have met all the tax requirements.
You can get the certificate from the myAADE platform. It is usually ready right away.
Tax Clearance Certificate
You also need a Tax Clearance Certificate to sign the contract.
The Greek tax office (AADE) issues the certificate. It is usually valid for about two months.
If you do not have a Tax Clearance Certificate the notary cannot complete the sale.
5. Exceptions and Cases Where No Tax Is Due
You do not always have to pay tax when you sell a property.
This can happen in situations like:
- You sell the property for less than you paid for it.
- You do not make a profit.
- There are tax rules that apply
Because tax rules change you should always check with an accountant or tax advisor before selling a property.
6. Tax Checklist Before Selling a Property
Before you sell a property make sure you have:
- Checked if you have to pay capital gains tax.
- Paid any taxes you owe.
- Got a Tax Clearance Certificate.
- Made sure you do not owe any taxes that could affect the sale.
- Talked to an accountant if you have sold properties or if it is a complex tax situation.
If you are prepared you will know how much money you will get from the sale.
FAQs
If I sell my house for less than I paid for it do I pay tax?
Usually no. If you do not make a profit you do not pay capital gains tax.. You should always check the rules that apply at the time of the sale.
Is there a tax exemption, for selling a residence?
It depends on the tax rules at the time of the sale. You should always check the rules before you sell.
What tax do I pay if I sell an inherited property?
It depends on how you got the property how long you have owned it and the value of the property. You should talk to an accountant or tax advisor before you sell an inherited property.