If you’re planning to sell property in Greece, a pivotal 2024 court decision could impact how your profits are taxed. In ruling 1840/2024, the Greek Council of State clarified that even a single, high-profit transaction may be classified as business income—regardless of whether the seller owns a registered business. This signals a stricter approach by the Greek tax authorities on property transactions, especially those showing intent to profit.
The Case That Changed the Rules on Property Income
In this case, a seller made over €1.3 million in profit by flipping a property just three days after purchasing it. Although it was a one-off deal, the court ruled it was commercial in nature, citing:
- The short holding period
- A significant capital gain
- Payment made directly from the final buyer to the original seller
Under Article 28 of the Greek Income Tax Code, these characteristics indicated a profit-driven transaction, not mere asset management—triggering business income tax treatment.
Beyond Frequency: Substance Over Form
Until now, tax authorities typically used the ‘three transactions in two years’ guideline (Circular E.2031/2023) to define business activity. However, this decision emphasises that substance overrules frequency. Even one property sale in Greece can now be considered business income if it appears speculative, structured for gain, or shows business-like characteristics.
This shift has serious implications for:
- Property flippers
- Short-term investors
- Individuals selling inherited or high-value assets quickly
Real Estate Tax in Greece: What to Watch Out For
If your transaction is reclassified, you may face:
- Higher income tax rates
- Additional business tax obligations
- Audit risk and possible penalties
This makes it essential to analyse your Greek real estate sale before you close the deal—especially when large profits or fast resale timelines are involved.
Eurofast’s Take: Stay Compliant with Greece’s Evolving Property Tax Rules
At Eurofast, we help property owners and investors across Greece ensure that their transactions are compliant, optimised, and protected from reclassification. With the line between capital gains and business income becoming less predictable, our advisory team offers:
- Strategic structuring of real estate sales in Greece
- Tax impact assessments for high-value or fast-turnover deals
- Ongoing monitoring of court rulings and Greek tax law updates
Whether you’re selling a family property or managing a broader investment portfolio, Eurofast helps you stay ahead—while minimising tax exposure and legal risks.
For further queries, please, contact us at [email protected]