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Greece Plans Extension of VAT Suspension on New Homes Until 2026 to Boost Real Estate Market

The Greek government is preparing to extend its tax incentive for new housing developments, a measure initially introduced as part of its post-crisis recovery strategy. According to the Ministry of Finance, officials are considering prolonging the suspension of the 24% Value Added Tax (VAT) on the purchase of newly built residential properties until the end of 2026.

Under the proposed extension, buyers of new homes would continue to pay only the 3.09% property transfer tax instead of VAT — a move aimed at supporting housing demand and maintaining market momentum.

The Ministry estimates that the total value of this tax relief will not exceed €1.5 billion, ensuring that fiscal stability is preserved while encouraging investment in the construction and real estate sectors.

Implications for Investors

  • Significant savings: Buyers could save up to 20–24% on the purchase price of new properties.
  • Market growth: The measure is expected to drive stronger demand for new developments, particularly in 2026.
  • Investment timing: 2025 may represent an optimal window for investors to secure favorable prices before a surge in demand.

Analysts suggest that extending the VAT suspension will sustain Greece’s real estate recovery, attract both domestic and international investors, and further strengthen the country’s property market outlook.