How to Buy Your First Home Tax Free In Greece

As the housing crisis in Greece rolls on, Greece’s Independent Authority for Public Revenue (AADE) has provided a much-needed guide addressing 17 common questions about tax exemptions for those intending to purchase their first home.

The guide clarifies eligibility criteria for minors, co-ownership, spouses, and auxiliary spaces and also explains when tax exemption is revoked and when it can be granted a second time.

Some of the most common questions are:

• Can a minor receive a tax exemption for first-time homeownership?
• Is an exemption granted for a property used as a residence but registered as commercial space on the building permit?
• Can a tax exemption be granted a second time or after the contract has been signed?
• What applies to auxiliary spaces?

The key questions encountered by AADE and the answers, as provided in the guide, are found below:

1. Does the first-home exemption apply to property transfers through distribution, consolidation, exchange, court-recognized ownership, or settlement of inheritance claims?

   • No, the exemption applies only when a property is purchased under a formal sales contract.

2. Is the exemption granted if a property is acquired through auction?

   • Yes, even if the highest bidder is the spouse or a first-degree relative of the auctioned party.

3. If someone owns a share of a home or land that meets their housing needs and transfers part of it, can they claim a first-home exemption before five years have passed?

   • No, a five-year period must pass before they can qualify for the exemption again unless they sell their entire ownership share.

4. Can a minor qualify for a first-home tax exemption?

   • No, except in cases where an orphaned minor under guardianship buys a property.

5. If someone co-owns multiple properties, how is their housing need assessed for exemption eligibility?

   • The total surface area of all properties they partially own is considered, excluding rural plots and properties in small municipalities with fewer than 3,000 residents.

6. If one spouse transfers their share of a jointly owned home to the other before five years have passed, does the exemption remain valid?

   • Yes, as long as the couple is still married and the property continues to meet their housing needs.

7. If a property lacks a formal horizontal or vertical ownership declaration but contains independent housing units, does the exemption apply?

   • Yes, the exemption covers the entire property, including air rights.

8. Does the exemption apply to the exclusive use of common areas, except for storage and parking spaces?

   • No, tax is due on common areas. The exemption only applies to one storage unit and one parking space acquired in the same transaction.

9. If an auxiliary space (e.g., storage room) is included in a first-home purchase but is listed differently in the valuation forms, does the exemption still apply?

   • Yes, the valuation method does not affect the exemption.

10. Can a property qualify for exemption if it is used as a home but registered as commercial space in its building permit?

• No, unless the building use is formally changed before the transfer.

11. Does the exemption apply to a non-buildable plot within city limits awaiting planning approval?

• No, the plot must be officially buildable at the time of purchase.

12. Do registered civil partners qualify for the first-home exemption like married couples?

• Yes.

13. Can the exemption be granted after the purchase contract is signed?

• Yes, a late amendment request can be submitted within five years, along with supporting documents.

14. Can someone receive the exemption a second time?

• Yes, if their existing property no longer meets their family’s housing needs and they repay the tax initially waived.

15. If a married couple wants to buy a home with the exemption, but one spouse previously used the exemption while single, do they still qualify?

• The previous exemption must be revoked before they can claim a new one.

16. If the exemption tax is repaid due to a second exemption request but the contract is later canceled, is the tax refunded?

• Yes.

17. What happens if a property purchase contract with an exemption is canceled, and a new one is signed?

• If the cancellation occurs within four years due to legal or exceptional reasons, no tax is owed, and the exemption remains valid. A new exemption can also be granted for the new contract.

Source: OT.gr