Tax exemptions on real estate in Greece have expanded in recent years to such an extent that they have triggered growing concern within the country’s economic authorities, both over their fiscal cost and the effectiveness of existing oversight mechanisms. What was designed as a targeted special tax on property ownership has gradually turned into a system riddled with exemptions, significantly reducing its revenue contribution and raising suspicions that the framework has been exploited beyond its original intent. Against this backdrop, the government has moved to tighten procedures and strengthen controls to ensure that exemptions are granted only to those who genuinely qualify under the law.
According to official data, total tax expenditures amount to €22.88 billion, of which nearly 40% relate to exemptions in capital taxation. Within this category, the special real estate tax and the real estate transfer tax account for the largest fiscal losses, underscoring the dominant role of property ownership in the overall structure of tax reliefs. The scale of the issue is illustrated by a single exemption linked to the special real estate tax which, despite applying to just over 12,500 cases, carries an estimated fiscal cost exceeding €6.3 billion.
In response, the Independent Authority for Public Revenue, Greece’s tax administration, has issued a decision published in the official government gazette aimed at restoring order and introducing a clearer framework for granting exemptions from the special real estate tax. The measure details how Article 18 of the new Property Tax Code is to be applied and sets out, in precise terms, the documentation and procedures required from legal entities seeking preferential treatment.
The new rules primarily affect companies, organizations and institutions that either carry out genuine productive activity or serve charitable, social or public-interest purposes. At the same time, the breadth and complexity of the documentation requirements signal the tax authority’s determination to close loopholes that may have enabled abusive use of exemptions in the past, ensuring that tax relief is granted strictly where the law provides for it.
Under the revised framework, supporting documents must be maintained on an annual basis and must reflect the actual status of each entity as of January 1 of the relevant tax year. Listed companies, commercial and industrial firms, shipping companies, insurance funds, investment vehicles, as well as charitable foundations and civil society organizations, are now required to substantiate in detail the nature of their activities and their operational structure in order to remain exempt from the tax.
Particular emphasis is placed on transparency in ownership structures and the identification of beneficial owners. The tax authority requires official certifications from public bodies or registries and, where such documentation is not available, sworn declarations with strict content requirements. These procedures are accompanied by targeted tax audits and, in some cases, on-site inspections of properties, adding pressure on businesses already operating under tight compliance deadlines.
Applications for exemption must be submitted by the end of January each year, either electronically through the myAADE digital platform or in hard copy to local tax offices. For the 2026 tax year, however, a transitional deadline of 30 days from the publication of the decision has been granted, an implicit acknowledgment of the challenges entities face in adjusting to the new and more demanding compliance regime.
