Greece's Finance Ministry has published a draft bill that clarifies the tax residency of buyers will determine the purchase tax rate, not their citizenship. This means Israelis holding European passports but residing in Israel will be subject to the 15% tax.
What happened
The Greek government announced its intention to hike the purchase tax on apartments from 3% to 15% to reduce demand from foreign investors, including Israelis, who have contributed to rising real estate prices. The draft bill, published on October 18, stipulates that tax residency, not citizenship, will determine the tax rate. This means that even if an Israeli holds a European passport, they will still be subject to the 15% tax if they are considered a tax resident in Israel.
The proposed tax increase could significantly raise costs for buyers. For example, on an apartment worth 150,000 euros, the buyer will pay 22,500 euros instead of 4,500 euros. The tax will apply to final purchase contracts signed starting July 1, 2027.
Experts warn that the new tax will add to the challenges facing foreign investors in Greece. The Greek government has already raised the investment amount required to obtain a golden visa and imposed restrictions on registering new apartments for short-term rentals in certain areas.
