Greek Real Estate Market Reform: Major Changes in Property Transfers and Inheritance Tax
- Yannis Avgerinos
- Mar 9
- 6 min read
Greece continues to attract strong interest from international investors and property buyers. Recent legislative reforms introduced by the Greek government aim to simplify real estate transactions, reduce bureaucratic obstacles, and facilitate the transfer of property assets across the country.
The Greek government has introduced a new legislative initiative aimed at unlocking the real estate market in Greece, reducing bureaucratic barriers and facilitating property transactions for heirs, debtors, investors, and property owners. The draft bill, currently under public consultation and presented by the Greek Government, introduces a series of reforms designed to activate thousands of properties that remain effectively “frozen” due to tax debts, legal disputes, inheritance issues, or complex administrative procedures.
At a time when housing demand and property prices in Greece continue to rise, the government’s objective is to increase the supply of available properties by simplifying procedures and enabling owners to manage and transfer their assets more easily. The core philosophy of the reform is based on three pillars: less bureaucracy, faster property transfers, and greater flexibility for property owners facing tax or legal obstacles.
Inheritance Tax Payable Through Property Sale Proceeds in Greece
One of the most significant changes concerns the payment of inheritance tax in Greece. Under the current legal framework, heirs must first pay the inheritance tax before they are able to sell or transfer the inherited property. In many cases, this requirement creates serious financial obstacles, especially where heirs lack the necessary liquidity.
The new provision allows inheritance tax, gift tax, or parental donation tax to be withheld directly from the property sale price.
In practice:
The notary public will submit both the property transfer tax declaration and the inheritance tax declaration simultaneously.
The corresponding tax amount will be automatically withheld from the sale proceeds.
The withheld amount will be paid directly to the Independent Authority for Public Revenue (AADE).
This mechanism enables heirs to sell inherited property even if they do not have the funds available to pay the tax in advance, thereby facilitating transactions and preventing properties from remaining inactive.
Limitation of State Ownership Claims Over Disputed Properties
The draft legislation also introduces a clearer legal framework regarding State ownership claims over properties with unclear title status. For decades, many properties in Greece have been involved in disputes with the State due to historical ownership ambiguities or incomplete administrative records.
Under the new provisions, the State will refrain from asserting ownership claims where specific evidence exists, including:
Registered title deeds predating 1975
Settlement or installation following instruction by a public authority, such as in cases involving refugee resettlement
Administrative concession titles granted by the State
A similar approach will apply to agricultural land that was historically allocated but for which final ownership titles were never formally issued. The reform seeks to reduce long-standing litigation and align the legal framework with the jurisprudence of the Areios Pagos (the Hellenic Supreme Civil and Criminal Court).
Lifting Property Seizures to Allow Real Estate Transactions
Another key reform concerns properties that are subject to seizure due to tax debts owed to the Greek State. Under the current system, even if a buyer has been found, the transaction can be cancelled at any stage by the tax authorities due to the existing seizure. The proposed legislation introduces a mechanism allowing the lifting of property seizures in order to facilitate the completion of a sale, provided certain conditions are met.
Key conditions include:
The seller must obtain a tax clearance certificate or a certificate confirming outstanding debts.
The agreed sale price cannot be lower than the property's commercial value or its objective tax value.
At least 25% of the outstanding tax debt will be withheld from the sale proceeds and paid directly to the State.
This measure aims to allow property owners to utilize otherwise immobilized assets, while ensuring that the State still collects part of the outstanding debt.
Reduction of Bureaucracy in Property Transfers in Greece
The new legislative framework also seeks to simplify administrative procedures related to real estate transfers in Greece.
Specifically, the bill abolishes the mandatory preparation of a topographical diagram for properties located within approved city planning zones, provided that:
An approved implementation plan exists, and
The area is already registered in the Hellenic Cadastre (Ktimatologio).
Where a cadastral record and an electronic building identity already exist, the additional requirement of a topographical diagram is considered unnecessary and contributes to higher transaction costs and delays.
Notaries as a One-Stop Shop for Real Estate Transactions
A central pillar of the reform is the enhanced role of notaries in the real estate transaction process. Under the proposed system, notary offices will operate as integrated service centers (“one stop shops”), digitally connected with the AADE and other public authorities.
Notaries will be able to:
Conduct automated tax exemption checks
Submit property transfer tax declarations
Manage tax and social security liabilities related to the transaction
Pay Cadastre registration fees
Handle the management of the purchase price through a special protected (non-seizable) account
Under the proposed framework, the notary will play a central role in managing much of the administrative process involved in a property transfer in Greece, including tax declarations and digital filings. In practice, buyers and sellers will generally need to appear only for the signing of the notarial deed, while the majority of the administrative process will be handled electronically by the notary office.
Expected Impact on the Greek Real Estate Market
Through these reforms, the government aims to address one of the most persistent problems of the Greek real estate market: thousands of properties remaining inactive due to debts, legal disputes, inheritance complications, or administrative obstacles.
If effectively implemented, the new framework is expected to:
Increase the supply of available properties
Facilitate real estate transactions
Reduce legal uncertainty surrounding property ownership
Improve the overall efficiency of the Greek property market
These reforms may also influence the broader environment for buying property in Greece, as the simplification of procedures and the resolution of long-standing ownership disputes could gradually increase the availability of properties on the market. However, the true impact of the legislation will depend on how efficiently the new procedures are implemented in practice and how quickly public authorities and professionals adapt to the new system.
Practical Implications for Property Owners and Investors
The proposed reforms may have significant practical implications for individuals and investors dealing with real estate assets in Greece.
For heirs who inherit property but lack the liquidity to pay inheritance tax, the new mechanism allowing tax payment directly from the sale proceeds could remove one of the most common barriers to selling inherited assets.
Property owners whose assets are currently subject to tax-related seizures may also benefit from the possibility of completing a sale, provided that part of the outstanding tax debt is settled through the transaction. The clarification of the State’s ownership claims over disputed properties may further reduce legal uncertainty that has historically affected many properties, particularly in cases involving older titles or land allocated through administrative acts.
At the same time, the simplification of administrative procedures and the enhanced role of notaries as integrated service providers could significantly reduce the time required to complete property transfers.
For investors and buyers, these changes may gradually increase the availability of properties in the market, particularly assets that have remained inactive due to legal, tax, or administrative complications.
Frequently Asked Questions About the Greek Real Estate Reform
Can inherited property in Greece be sold before paying inheritance tax?
Under the proposed reform, inheritance tax may be withheld directly from the sale proceeds, allowing heirs to complete the transaction even if they do not have the funds available in advance.
What happens if a property in Greece has been seized due to tax debts?
The new legislation may allow the lifting of the seizure for the purpose of completing a sale, provided that certain conditions are met and part of the outstanding tax debt is paid from the sale proceeds.
Will property transfers in Greece become faster?
The reform aims to reduce administrative bureaucracy by simplifying documentation requirements and allowing notaries to manage most of the transaction process electronically.
Legal Assistance for Property Transactions in Greece
Navigating real estate transactions in Greece often requires careful legal guidance, particularly in cases involving inheritance, tax obligations, or disputed ownership titles. Our law firm advises Greek and international clients on property transfers, real estate investments, and inheritance matters related to immovable property in Greece.
This article was prepared by the legal team of AVGLaw, focusing on real estate law and property transactions in Greece. For a free consulation, please Contact us.
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