Tax overview for real estate, hospitality and industry in Greece and Cyprus (2026)
Greece: 22% corporate tax, 3% transfer tax plus surcharge, VAT and capital-gains suspensions to end-2026; Cyprus: 15% corporate tax and stamp duty abolished from 2026.
Rates and exemptions have conditions that are not reproduced here. The legal texts prevail over this summary.
Greece: headline parameters#
| Item | Headline | Official source |
|---|---|---|
| Corporate income tax | 22% for profits from tax year 2021 onwards (Article 120, Law 4799/2021). Credit institutions and some cooperatives have other rates | Ministry of Finance tax guide |
| Dividend withholding tax | 5% | Ministry of Finance tax guide |
| Real estate transfer tax | 3% of taxable value, plus a 3% municipal surcharge on the tax (3.09% of taxable value in total). Paid by the buyer | AADE |
| VAT | 24% standard; 13% and 6% reduced; 30% lower rates on specified islands | Ministry of Finance VAT guide |
| VAT on new buildings | 24% VAT applies to new buildings with permits from 1 January 2006. A constructor can apply to suspend VAT until 31 Dec 2026, in which case transfer tax applies instead | Article 12, Law 5246/2025 (ΦΕΚ Α' 198/2025 extract, AADE); VAT guide |
| Individuals' capital gains on real estate | Suspended until 31 Dec 2026 (Article 90, Law 5162/2024) | Ministry of Finance tax guide; Housing Policy Portal |
| Individuals' rental income | From tax year 2026: 15% up to €12,000; 25% from €12,000.01 to €24,000; 35% from €24,000.01 to €36,000; 45% above €36,000 | Article 8, Law 5246/2025 (ΦΕΚ extract) |
Rental income from properties that were vacant or used for short-term rental can be exempt for a period if a long-term lease is signed, subject to conditions (Ministry of Finance tax guide). Annual property tax (ENFIA) is formula-based and is not summarised here.
Hospitality: Climate Crisis Resilience Fee#
A fee per night and per room or unit is collected from guests and paid to AADE through monthly declarations. The legal basis is Article 44 of Law 5177/2025 (ΦΕΚ Α' 21), as stated in AADE's FAQs (PDF). The amounts in the text of Article 44 (as reproduced by TaxHeaven) are:
| Accommodation | April–October | November–March |
|---|---|---|
| Hotels, 1–2 stars | €2 | €0.50 |
| Hotels, 3 stars | €5 | €1.50 |
| Hotels, 4 stars | €10 | €3 |
| Hotels, 5 stars | €15 | €4 |
| Rented furnished rooms/apartments | €2 | €0.50 |
| Short-term rentals (Article 111, Law 4446/2016) | €8 | €2 |
| Short-term rentals: detached houses over 80 m² | €15 | €4 |
| Tourist villas | €15 | €4 |
| Tourist furnished residences: under 80 m² / 80 m² or more | €8 / €15 | €2 / €4 |
The Housing Policy Portal's page on the short-term rental fee gives the same €8 and €2 amounts for short-term rentals, in force since 1 January 2025. Registration rules for short-term rentals are in the short-term rental rules note.
Cyprus: the 2026 tax reform#
The government's tax reform site states that the reform has been passed and applies from 1 January 2026. Its page on business measures lists:
- Corporate income tax: 15%, up from 12.5%.
- Stamp duty: abolished.
- Deemed dividend distribution: abolished.
- Tax on actual dividends: reduced from 17% to 5%.
- Losses: the carry-forward period is extended to seven years.
- Allowances: the 20% super-deduction for research and development spending, and accelerated capital allowances for green capital expenditure, are extended to spending up to 2030.
EY reports further changes relevant to property:
- Publication. The laws were published on 31 December 2025.
- Defence tax. Rental income is no longer subject to Special Defence Contribution.
- Indirect disposals. The capital gains tax threshold for indirect disposals of shares in property-owning companies falls from 50% to 20% of value derived from Cyprus immovable property.
We did not confirm these three points in an official Cyprus source.
Incentive schemes#
Greek investment incentives (Development Law 4887/2022, strategic investments) are in the Development Law note. Residency criteria, including Cyprus's reference to VAT on new residential purchases, are in the residency-by-investment note.
Sources#
- Ministry of Finance: income taxation guide
- Ministry of Finance: VAT guide
- AADE: real estate transfer tax (Greek)
- AADE: extract of ΦΕΚ Α' 198/2025, Law 5246/2025 (Greek PDF)
- Housing Policy Portal: capital gains tax suspension (Greek)
- Housing Policy Portal: climate resilience fee on short-term rentals (Greek)
- AADE: Climate Resilience Fee FAQs (PDF)
- TaxHeaven: Law 5177/2025, Article 44 (Greek)
- gov.cy: Tax reform
- gov.cy: Tax reform, business measures (Greek)
- EY: Cyprus enacts major tax reform legislation (reported)