Strong reactions and concern in the real estate market have been triggered by the government’s surprise announcement of a fivefold increase in the property transfer tax, from 3% to 15%, for those buying properties in Greece and coming from countries outside the European Union.
Real estate market players warn that the measure, if applied across the board, could limit transactions, affect the inflow of foreign capital and particularly hit the luxury housing market and new developments that rely on international buyers.
The measure was announced by Kyriakos Mitsotakis from the podium of the 90th Thessaloniki International Fair (TIF) as a “disincentive” in response to increased demand from third countries. According to the Prime Minister, interest from buyers from countries such as China, Turkey and Israel has contributed to keeping high prices in several areas, making homeownership more difficult for Greeks.
The market’s initial reaction, however, has been particularly cautious. Industry executives question whether across-the-board taxation of all non-EU buyers can effectively address the housing problem, arguing that the main cause of rising prices lies primarily in the limited supply of housing. The reactions already recorded following the TIF announcements focus both on the new tax and on the broader direction of housing policies.
Fear of a “freeze” in transactions
The first issue raised by market professionals is the scale of the additional burden. In a €500,000 purchase, for example, a 3% tax amounts to €15,000, while at a 15% rate it rises to €75,000. This means an additional cost of €60,000 before even taking into account the other expenses involved in a property transaction.
The difference becomes even greater as the value of the property rises. For a property worth €800,000, the move from 3% to 15% entails an additional tax burden of €96,000.
This is precisely why market players fear that, rather than automatically leading to a de-escalation of prices, the measure could initially result in lower market liquidity. Real estate agents and property advisers argue that a foreign buyer considering Greece alongside other Southern European markets will now factor in a significantly higher entry cost.
The government, however, is seeking through this move to limit part of the demand in order to reduce pressure on prices. Real estate market executives counter that without a substantial increase in the available housing stock, addressing demand alone is not enough.
According to data cited by them, foreign investment in real estate amounted to €2.05 billion in 2025, compared with total property transfers of €23.5 billion. Based on this comparison, foreign capital accounted for approximately 8.7% of the market. At the same time, they argue that foreign inflows fell by 25% in 2025, while apartment prices continued to rise by 7.8%.
The same argument also points to the decline in construction activity compared with pre-crisis levels, the transfer of a significant number of properties to short-term rentals, as well as the rise in construction costs. According to the figures cited, construction costs increased by 27.5% between 2020 and 2025, with materials rising by 35.5% and labour costs by 16.5%.
Fears over new developments
Particular concern is being expressed in the sector of new developments and luxury housing. In areas such as the Athens Riviera and popular island destinations, a significant share of demand comes from abroad.
Market players also point out that several projects finance part of their development through pre-sales. If a significant portion of prospective buyers faces an additional tax of 12 percentage points, there are fears that some investments could be reconsidered or delayed.
The concern also extends to large mixed-use projects, where hotels, branded residences and other tourism or residential infrastructure are developed as a single investment product. Many believe that in such projects, the ability to sell homes to an international audience is often an important part of the financing model.
Americans, Britons, Israelis and Chinese “in the same basket”
Another point of friction is the horizontal nature of the measure. The tax does not exclusively concern investors acquiring property for a Golden Visa. Based on what has been announced so far, it applies broadly to buyers from third countries.
This means that buyers from the US, the UK, Israel, Turkey, China or Switzerland could all fall under the same regime. The market is therefore calling for clarification on whether there will be exemptions, distinctions based on the type of property or investment, and what will happen in cases of dual nationality.
This particular issue is especially important for the luxury and holiday home market, where the buyer profile is different from that of those seeking an affordable primary residence in major urban centres. Industry players therefore raise the question of whether taxing, for example, a luxury villa worth several million euros on an island can actually improve access to a first home for a Greek household.
The paradox of Golden Visa and non-dom
Real estate executives also identify a contradiction with the policy of attracting foreign capital that Greece has pursued in recent years.
On the one hand, there are tools such as the Golden Visa and the non-dom regime, which were designed to attract wealthy individuals and investment from abroad. On the other hand, the same potential investor will now face a 15% property transfer tax if they come from a country outside the EU. Market players fear that this change could create an impression of inconsistency in the investment framework.
International experience reinforces the concern. The “Canadian model” is already being cited in the media. Canada banned foreign purchases in 2023. Foreign buyers accounted for 1.1% of sales in British Columbia, Royal LePage recorded “essentially zero impact” on prices, and prices rose by more than 20% while the ban was in effect. The Canadian model also exempts vacation homes and refunds the tax to anyone who becomes a permanent resident. New Zealand banned such purchases in 2018 and reversed the policy in December 2025 for homes worth more than $5 million. Spain announced a tax of “up to 100%” and abandoned it before it was passed.
More room for Greek buyers
Despite the reactions, there is also another interpretation of the measure. The government’s rationale is that strong international demand has burdened certain local markets and that limiting it could reduce the competition faced by Greek buyers.
This is particularly critical in areas where the properties sought by foreign investors overlap with those sought by Greek households. Combined with the new “My Home III” programme, worth €2 billion, the government is essentially seeking to move on both fronts: to strengthen the purchasing power of Greeks while at the same time limiting some of the competition from abroad.
