The start of 2026 signals a new tax regime, with significant reductions for more than 1.5 million property owners, tenants and buyers as well as those renovating houses, according to a report on ERTNews.gr. The measures put in place include:
– reduced income tax rates for rentals,
– cuts in ENFIA for particular categories of owner,
– continuing suspension of VAT on transfers of new buildings and of CGT on sales of existing ones,
– exemptions and reductions in income tax for owners who bring previously unoccupied dwellings onto the rental market or carry out renovation works and energy upgrades, and
– reduction of assumed incomes based on property sizes.

Income tax reductions on rental income
A new intermediate tax rate of 25% on incomes from €12,000 to €24,000 instead of the 35% which was in force until last year, will bring savings of up to €1,300 for the 161,587 property owners who receive rentals over €12,000 annually. The updated scale is as follows:

Rental income                    Tax rate
€0 – €12,000                        15%
€12,001 – €24,000             25%
€24,001 – €35,000             35%
€35,001 and above             45%

Unoccupied dwellings
Owners who rent out previously unoccupied dwellings or who transfer from short-term to long-term rentals, up to 31st December 2026, will be fully exempted from income tax on the rental income they receive for three years. The exemption applies to rentals of dwellings which were empty for at least three years and for those which were on short-term rental with an area of up to 120 sq m. If the tenant has more than two children, the size limit is increased by 20 sq m for each additional child.

The rental period must be at least three years. For rentals to public employees, unlimited rentals of a minimum 6 months are permitted, and the time limit for contracting a new rental is 6 months, the exemption for the remainder of the three years being lost if the re-rental does not take place within that period.

If the dwelling is let on short-term rental during the three-year period, the tax exemption ceases to apply retrospectively from the first year of rental, and there will also be an issue of retrospective repayment of income tax on all the rental income received which was exempted from tax.

ENFIA
More than 1 million taxpayers whose main residence is in small villages will receive an automatic reduction of 50 per cent on this year’s ENFIA, the assessment for which will be issued at the beginning of March, while from 2027 they will be completely exempted from the tax.

The measure applies to natural persons who are tax residents of Greece and whose main residence as it appears on their income tax returns is in settlements with a population of less than 1,500 inhabitants, with the exception of settlements in the Region of Attica, not including the Regional Unit of Nisi (Islands).

The 50% reduction in ENFIA is granted exclusively to those with rights (full ownership, partial ownership, usufruct) pertaining to the main residence and provided that the total total value of full ownership does not exceed €400,000.

Presumption of incomes
There is also a reduction of up to 35% in the presumption of incomes related to property, which will benefit hundreds of thousands of taxpayers. The presumption of income for main residences is calculated on the following scale:
– Up to 80 sq m main areas, €28 per sq m (reduced from €40)
– From 81 to 120 sq m main areas, €45 per sq m (from €65)
– From 121 to 200 sq m main areas, €77 per sq m (from €110)
– From 201 to 300 sq m main areas, €140 per sq m (from €200)
– From 301 sq m and above, €280 per sq m (from €400).

The above amounts are increased by 40% for dwellings which are in areas with a zonal price of €2,800 to €4,999 per sq m, and by 70% for areas where the zonal price is €5,000 and above per sq m. For detached houses there is an increase of 20%, while for secondary residences, the amounts are reduced by 50%.

Suspension of VAT
VAT on transfers of new buildings remains suspended for the current year, with only the transfer tax of 3% being payable. The suspension of VAT will apply to all the builder’s unsold properties, and the measure will appreciably reduce the cost of acquiring accommodation for the buyer.

Building renovations
A reduction in income tax of up to €16,000 over a period of 5 years (from 2026 to 2031) will be granted to those who within the current year incur costs for the energy-related, operational or cosmetic upgrading of dwellings or commercial property. There will be an annual reduction of up to €3,200, with the proviso that the expenses have been paid through electronic means and that the relevant invoices have been passed on to the AADE.
(Haniotika Nea, 03/01/26)