Straight off the press...it's just been reported that the current freeze of 24% VAT on the purchase of newly constructed properties for sale in Greece is likely to be extended another 2 years until the end of 2024!!
This heavy tax had been applicable to the purchase and sale of real estate constructed with building permission dated after 1st January 2006. In 2019 however, after years of national economic crisis, it was decided by Mitsotakis' government to give the construction industry a boost and to make new build properties for sale in Greece more attractive to buyers by suspending the necessity to pay 24% VAT on top of the price for sales from 1st January 2020 until 31st December 2022. Unfortunately shortly after the initiative commenced however so did the Covid pandemic and subsequent worldwide lockdown so a lot of time and in turn opportunity was lost.
The exciting news is that not only is it being reported that the VAT-free period will be postponed at least until 31st December 2024 but there is also speculation that it may be abolished completely in line with other EU countries or at the very least reduced to the lower rate of 13%.
We are really pleased by this information because after some difficult years during the crisis, when construction pretty much ceased in tourist areas like Halkidiki, we had started to see many new developments springing up again, which has revitalised the market. Recently built properties for sale in Greece have been attracting interest with their sophisticated designs, full specification and higher, energy efficient standards and we are actually seeing that they are selling off-plan long before construction has even finished!! We hope constructors will continue to invest over the next few years and there will be more quality properties for sale in Greece in the near future.