Primary residence tax exemption 2026

What the exemption is & its legal basis

The primary residence exemption concerns the Real Estate Transfer Tax (RETT): the buyer doesn't pay it when acquiring a property intended to cover the housing needs of themselves and their family. The exemption is full up to the tax-free limit; for value exceeding the limit, RETT is owed as normal.

Until recently, the core legal basis was the historic Law 1078/1980. As of 18 July 2025, with Law 5219/2025 (Government Gazette A' 130) "Property Taxation Code", the provisions were codified into a single text. The special exemption for purchasing a primary residence is now governed by Articles 40-45 (Chapter B), while the corresponding exemption for parental gifts is found in Article 96.

Who qualifies

Beneficiaries of the exemption are individuals — single, married, or in a civil partnership — provided they permanently reside in Greece or intend to settle there within two years of the purchase at the latest. As a rule, minors don't qualify for the exemption; the exception is when the home comes from inheritance, gift, or parental transfer. Minor children who don't have both parents living also qualify — specifically for the single person's exemption.

The law extends the married person's exemption to certain special categories: a widowed or divorced person (or one whose civil partnership has ended) who has custody of minor children; an unmarried mother or a father who has legally recognized paternity with custody of children; a single adult with at least 67% disability; and the surviving spouse of a beneficiary of a loan from the former Workers' Housing Organization (OEK).

Co-owners, spouses & civil partnerships

Persons in a civil partnership are subject to the same conditions as married couples. In the case of a joint purchase by spouses, the latest IAPR circular (November 2025) clarified a point that had caused confusion: transferring a share of co-ownership from one spouse to the other before the five-year period is complete does not void the granted exemption, as long as the marriage remains in effect and the property continues to cover the family's housing needs.

A special case is the separated spouse: as a rule, they receive the single person's exemption, but if they have custody of minor children, they qualify for the married person's exemption. Watch out for a common trap: if one spouse has already received an exemption in the past (e.g., as a single person), this affects the couple's eligibility, since the conditions are examined for that person too — a prior exemption may need to be revoked first.

Foreign and Greek-heritage buyers

The exemption isn't limited to Greek citizens. Beneficiaries also include citizens of EU and EEA member states, Greek-heritage individuals (particularly from Albania, Turkey, and countries of the former Soviet Union), recognized refugees, and third-country nationals under certain conditions (e.g., long-term resident status or second-generation residence permits). For foreign buyers, the intention to settle permanently in Greece isn't undermined by holding temporary, renewable residence permits.

💡 Tip: If you're a foreign buyer and don't yet live permanently in Greece, remember that the "settlement within 2 years" condition is binding. Failing to meet it is one of the reasons the exemption can be revoked retroactively.

Requirements

For the exemption to be granted, the following conditions must be met cumulatively:

Properties in areas with a population under 3,000, agricultural plots, and properties characterized as commercial premises don't count toward covering housing needs.

When housing needs are considered covered

The key question — do you qualify or not — is answered based on the square meters of the properties you already own. Housing needs are considered covered — meaning you don't qualify for the exemption — if the total surface area of your homes (or the sq.m. that could be built on land you own) reaches:

The calculation includes properties owned by the buyer, their spouse, and minor children. In cases of co-ownership (undivided shares), the surface area corresponding to your percentage share is what counts. Bare ownership and usufruct rights are also included.

💡 Don't confuse these - Square meters (70 + 20 + 20 + 25…) → used only to determine whether housing needs are covered, i.e. whether you qualify for the exemption at all. - Tax-free amount in euros (€200,000, €250,000, +€25,000, +€30,000) → used only to calculate how much exemption you'll receive. These are two entirely different figures, with different increments per child (20/25 sq.m. versus €25,000/€30,000). Confusing them is the most common misunderstanding — and it shows up even in published guides.

Tax-free limits

Once it's established that you qualify for the exemption, the tax-free amount in euros determines up to what value you won't pay tax. For a home purchase:

A single adult with 67%+ disability receives the married person's exemption, i.e. a tax-free limit of €250,000. The exemption amount also covers the value of one parking space and one storage unit, up to 20 sq.m. each, provided they're in the same property and acquired in the same contract at the same time. If the property's value exceeds the tax-free limit, the exemption is granted up to the limit, and RETT is owed on the excess.

For purchasing a plot of land (instead of a home), the limits are lower: €50,000 for single buyers and €100,000 for married buyers, with an increase of +€10,000 for each of the first two children and +€15,000 for the third and each subsequent child.

Figures sourced from Article 41 of Law 5219/2025 (IAPR/AADE).

Calculation examples

The numbers make sense in practice. In all examples, the tax is calculated on the higher of the property's assessed (objective) value or the contract price.

1. Single buyer, €180,000 apartment The tax-free limit (€200,000) fully covers the value. Exemption is complete — tax: €0. (Without the exemption: ~€5,562.)

2. Married buyer, €240,000 home Limit: €250,000. The value is fully covered — tax: €0.

3. Married buyer with 1 child, €300,000 home Limit: €250,000 + €25,000 = €275,000. Excess of €25,000. RETT applies only to the €25,000: ≈ €772.50 (versus ~€9,270 without the exemption).

4. Married buyer with 67%+ disability, €260,000 home Limit: €275,000. Full exemption — tax: €0.

5. Single buyer, purchase above the limit, €250,000 home Limit: €200,000. Excess of €50,000. RETT on the €50,000: ≈ €1,545.

6. Single buyer, €60,000 plot purchase Plot limit: €50,000. Excess of €10,000. RETT on the €10,000: ≈ €309.

7. Married buyer with 2 children, €300,000 home + parking space Limit: €250,000 + €25,000 + €25,000 = €300,000. The parking space (up to 20 sq.m., same contract) is included in the exemption. Tax: €0.

Figures are indicative and based on a 3.09% rate. The exact tax depends on the final taxable value.

Common confusion: Purchase vs. Inheritance vs. Parental Gift

Many buyers assume that "primary residence exemption" means the same thing regardless of how the property is acquired. In reality, these are three different tax regimes:

In other words: with a purchase, you avoid transfer tax; with a parental gift and with inheritance, you avoid entirely different taxes, each with its own limits and documentation. The one common principle is that the beneficiary shouldn't already own a property that covers the family's housing needs, and the five-year lock-in applies across all three. For the details, see our dedicated guides: Parental Gift of Property in Greece, Real Estate Inheritance in Greece, and Total Costs for Buyers.

The myPROPERTY process

Since 2021, the transfer tax declaration has been filed digitally through the IAPR's myPROPERTY application, with no need to visit the tax office. In practice, here's who does what:

Watch the deadline: the documents for the exemption must be submitted before the final contract is signed. If this deadline is missed, the exemption isn't necessarily lost for good — it can be requested afterward with an amended declaration and a tax refund request, provided the conditions were met at the time of purchase and the five-year period hasn't elapsed.

Required documents

Basic documents

Depending on your situation

For the full list of documents required for any property transfer (beyond the exemption itself), see our detailed guide Property Transfer Documents in Greece.

Second exemption

The exemption is, in principle, granted once — but the law explicitly provides for the possibility of granting it a second time, under conditions. The logic is practical: a family's housing needs change. The home that covered a couple isn't enough once they have three children.

When you qualify for a second exemption. Two conditions must be met cumulatively: first, the properties you hold at the time of the new purchase (you, your spouse, minor children) no longer cover the family's housing needs; second, you pay in full, in one go, the tax that would have applied to the property for which you received the first exemption.

What you pay. The tax is calculated using the rates in effect at the time of the first exemption, unless the tax on the original value would have been higher — in which case the higher amount is due.

When it pays off. When the value of the new, larger home significantly exceeds the tax-free limit, the benefit of the second exemption (on the new property) often outweighs the tax you pay back on the old one.

Example. You received an exemption for a 60 sq.m. apartment worth €150,000 as a single buyer. Now married with two children, you buy a €300,000 home. You pay the tax on the first property in full, but for the new one you're entitled to a tax-free limit of up to €300,000 (€250,000 + 2×€25,000) — meaning a full exemption.

When the exemption is lost

The exemption is revoked (cancelled retroactively) mainly in the following cases:

The State's right to assess the tax extends up to 15 years from the end of the year in which the exemption was granted, when the conditions weren't actually met.

When it's NOT lost

It's equally important to know when your exemption isn't at risk:

Expert Opinion — Terra Property The most underestimated trap isn't the five-year period itself, but creating a real right over the property during it. Many owners assume they just shouldn't sell. In practice, even granting usufruct to a relative or creating a habitation right can trigger the revocation of the exemption and the obligation to pay the full tax. Before making any move on the property within the five years, consult a notary or tax advisor.

Top 10 reasons for rejection

Legislation & official sources