• 07/07/2023

Exemption from the Special Property Tax

• Exemption from the Special Real Estate Tax (EFA) can be recognized in case of investment in real estate in Greece through a trust. As is well known, the EFA (15% on the objective value of real estate) is charged to domestic and foreign companies with real rights to real estate in Greece, unless they fall under one of the numerous exceptions provided by the law. The ultimate purpose of this tax, after all, is not to generate tax revenue but to achieve transparency around property owners.

From the new directives of the tax administration, it appears that an exemption from VAT can also be recognized in case the property in question belongs to a company, the shares of which belong to a trust, provided that it is not established in a non-cooperative state and if they arise the details of its beneficial owners, namely natural persons with a Greek tax identification number. This clarification comes to resolve the previous dispute regarding the possibility of trusts to justify an exemption from VAT, listing the exact conditions and supporting documents required (A.1089/2023).