Greece suspends VAT payments on new buildings

Greek Prime Minister has announced a three-year suspension of Value Added Tax (VAT) on new building and construction permits as well as on unsold properties built after 01/01/2006. The aim of this measure is to ease stock of unsold properties and stimulate development in Greece. The exemption will cover all real estate properties in the Greek market.

Prime Minister Kyriakos Mitsotakis stated on Wednesday evening (23/10/2019) that «VAT on all new building permits is suspended for the next three years, as it is for older permits issued after January 1, 2006. In other words, all new constructions are exempt from VAT as are properties built the last 14 years that have not been sold yet».

In all cases, Mitsotakis asserted that the exemption from VAT would be claimed with a simple application. The measure aims to revive the real estate market and boost the construction activity. The measure is also expected to boost the Golden Visa Scheme in relation to the property purchases of € 250,000 euros. The VAT was added to this price.