Rental Income Tax

• How is rental tax calculated in Greece?

For individuals, rental income in Greece is taxed progressively, with a three-tier tax rate system as follows:

• Up to €12,000 annual rental income: 15%
• Between €12,001 and €35,000: 35%
• Over €35,000: 45%

For example: a taxpayer with an annual rental income of €20,000 would be required to pay €4,250 in rental tax. It is important to note that there is a 5% reduction on the total rental income tax due to expense deductions for repairs and maintenance. Therefore, the taxable rental income is adjusted to €19,000. As such:

The first €12,000 * 15% = €1,800

The remaining €7,000 * 35% = €2,450

€1,800 + €2,450= €4,250

• What is stamp duty and is my purchase subject to it?

Stamp duty is an indirect property purchase tax. Stamp duty has been abolished for residential leases in Greece since January 1, 2008. However, rentals for non-residential properties are subject to 3,6% stamp duty and the tax is automatically collected with the landlord’s tax return assessment.