Property Tax & Transfer Fees

Property Tax & Transfer Fees

Immovable Property Tax

Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to the immovable property owned by the taxpayer on 1 January of each year.

This tax is payable on 30 September each year. Physical and legal persons are both liable to Immovable Property Tax.

Property value €  Rate %  Tax €  Accumulated Tax € 
 0 – 120.000  -
 120.001-170.000  0,4 200  200 
 170.001-300.000  0,5 650  850 
 300.001-500.000  0,6 1.200  2.050 
 500.001-800.000  0,7 2.100  4.150 
 Over 800.000  0,8    


Immovable Property Transfer Fees 

Value €  Rate %  Fee €  Accumulative fees € 
 0-85.430  3  2.563  2.563
 85.431-170.860  5 4.272   6.835
 170.861 and over  8    
As from 2 December of 2011 until 31 December of 2014, a transfer subject to VAT will be exempt from the above transfer fees and a transfer not subject to VAT will be eligible for 50% exemption from the above transfer fees.

No immovable property transfer fees are payable in the case of reorganization of companies.

In the situation of transferring of immovable property to a family company and provided the shareholders remain members of the same family, then after the passing of 5 years the immovable property transfer fees are being refunded. Specifically, for properties charged with VAT there will be no transfer fees payable and for properties that are not charged with VAT the transfer fees will be reduced by 50%.
In the case of property transferred from a company whose shareholders are spouses and/or their children, to one of the two spouses, or their children or to third degree of relation the transfer fees are calculated on the value of the property as follows:
if the transfer is to spouse - 8%
if the transfer is to child - 4%
if the transfer is to a relative - 8%
Also the following rates are applicable in the case of free transfers:
from parents to children - 4%
between spouses - 8%
between third degree relatives - 8%
to trustees - €8,54
Value in these cases is the one written on the title deed which refers to values of the year 1920.