News

The financial staff is considering suspending the imposition of the 24% VAT on construction for two more years with the aim of maintaining high growth rates and further stimulating construction. According to the legislation, VAT on real estate is "frozen" until the end of 2022 and the government intends to remain "frozen" until the end of 2024.

According to financial staff members, our country has the possibility to re-suspend the VAT on construction, pointing out that the decision taken by the government in 2019 encouraged the buying and selling of properties as well as the construction of new ones.

From 2025 the government has the possibility to reduce the VAT on real estate from 24% to 13%, or even to zero. The recent decision of the E.U. permanently enshrines Greece's ability to apply special reduced rates, which the Greek government will be able to do if fiscal conditions permit. What is important, sources from the Ministry of Finance say, is that now our country can proceed whenever it decides to apply reduced VAT rates.

It is noted that VAT is imposed on sales of newly built properties. From January 2025 and if extended for the next two years, the VAT on new buildings can either be limited to 13% or the country can ask to join the exemptions for real estate following the example of Luxembourg which has a zero rate.