Just like in many other countries, you need to pay the capital gains tax in Greece when you sell your property. It's one of the many required costs of this endeavor. If you thought that selling your property in Greece
will only earn you money, you're sadly mistaken. When you go through this process, you'll have to spend some of your hard-earned cash to ensure it all goes smoothly. And, in this particular, case, legally! Paying your capital gains tax, like many other taxes, is a legal requirement. At the very least, you ought to know the basics of it.
Does Your Residency Status in Greece Matter?
Since you're selling your property in Greece in this scenario, you already know that your residency status doesn't matter all that much. Foreigners and expats are allowed to purchase real estate in Greece, not to mention sell them when they decide to. But at the same time, doesn't paying taxes
in this country mean you're a resident here? Not necessarily. Though staying in the country for around six months at a time makes you a tax resident, the capital gains tax is imposed on anybody, regardless of resident status, who owns and sells their assets in Greece
What is Greece's Capital Gains Tax All About?
With your residency status out of the way, it's time to get to the basics of the capital gains tax in Greece. Firstly, what is it anyway? How does one define this particular tax? Well, according to RSM Global, this tax is for the capital gains realized by individuals and/or companies in Greece. In terms of real estate, it essentially means that you have to pay this tax imposed on the profit you earn from selling your property in the country. However, this still depends on a few conditions.
What Makes You Exempt from This Tax?
For the most part, you're liable to pay the capital gains tax in Greece when you sell your property here. That is if you've owned it for less than five years. However, if you've had the property under your name for more than five years, this makes you exempt from paying the capital gains tax. In many instances, you're also exempt if you used the said property as your main residence in Greece. And it's important to note that such exemptions are only valid within the country. It's possible you're liable to pay a higher capital gains tax in a different country if you're a resident there.
What is Greece's Capital Gains Tax Rate?
Now, let's talk about the Capital Gains Tax rate. As of this writing, it's set at a flat 15%. It doesn't go higher or lower depending on the property value. As long as you earn profit from selling your property in Greece, one that you've owned for less than five years, then you're liable to pay the capital gains tax at a rate of 15%. With that said, however, there have been cases where the tax has been reduced to either 13% or as low as 6% depending on specific situations.
Just like in other countries, you'll need to pay the capital gains tax when you sell your property in Greece. But before you do, you might want to know a little more about it. This will help you deal with it more properly!